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JM FINANCIAL MUTUAL FUND

COMMON APPLICATION FORM


Name & ARN of Distributor

(please ) as per your status Resident

DISTRIBUTOR INFORMATION
Internal Sub-Broker Code
Sub-Broker ARN
(as alloted by Distributor)

Serial No:

Non-Resident

Employee Unique Identification No.


(EUIN)^

Trust is always the answer

ED

FOR OFFICE USE ONLY


In-House number as per Date , Time and Number as per Time
K-BOLT
Stamping Machine

^Mandatory: Furnishing of EUIN is mandatory for all transactions (Purchase/Switch/SIP/STP) or following declaration should be signed by the investor (Please the box).
Declaration: I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this transaction is executed without any interaction or advice by the employee/relationship manager/sales person of the above distributor/sub broker or
notwithstanding the advice of in-appropriateness, if any, provided by the employee/relationship manager/sales person of the distributor/sub broker.

Signature of Sole/First Applicant/Guardian

Signature of Second Applicant

Signature of Third Applicant

Upfront commission shall be paid directly by the investor to the AMFI registered Distributor based on the investors assessment of various factors including the service rendered by the distributor.

INVESTMENT DETAILS (Pls Refer instruction No. 5)*??


Scheme Name

Plan

Option

Sub-Option

JM
*In case of any ambiguity / incomplete information, the default plan / option / sub-option will be applicable as per the schemes Key Information Memorandum, Scheme Information Document & Statement of Additional Information.
?? Investor desirous of investing directly with the AMC without availing the services of any Distributor/Broker, will have to clearly write Direct under above column titled as Plan.

1. TRANSACTION CHARGES (Please refer instructions / KIM and tick any one) Applicable for transactions routed through a distributor who has opted in for transaction charges.
I/We am/are a First Time Investor in Mutual Fund Industry. (Rs 150 will be deducted.)

I/We am/are an Existing Investor in Mutual Fund Industry. (Rs 100 will be deducted.)

2. EXISTING UNIT HOLDERS information (Please fill in your details mentioned below and proceed to section 4)
Folio No.

3. APPLICANT INFORMATION (It is mandatory to submit verified copy of PAN proof for all investments failing which application will be rejected) (Pls Refer instruction no. 8)
Date of Birth (Mandatory in case of Minor)
(Pls submit documentary proof)

(To be filled in block letters. Use one box for one alphabet, leaving one box blank between name and surname)
Full Name of Sole/1st Applicant/Minor/Non-individual:

Full Name of Guardian (in case of Minor) / Contact Person (In case of non-individual investors) / Karta (in case of HUF) / Partner (in case of Partnership Firm): Relationship with Minor [Pl. ] Pls submit documentary proof
Mother

Father

Legal Guardian

Address (DO NOT REPEAT NAME) in full of Applicant/Parent OR Guardian of Minor. Indian address in case 1st Applicant is NRI/FII/PIO (Post Box No. alone is not sufficient)

Location/City

Dist.

State

&

Pin/Zip Code

Country

Tel.

STD Code

Email-ID$
Mobile No. $

SMS and/ Email ID will be used as the default mode of communication if the mobile no. and/or Email ID is furnished.

Full Name of Second Applicant


Full Name of Third Applicant
Permanent Account Number (PAN)/ KYC ref. no. - Mandatory {Please submit a verified copy of PAN card for all
investors and KYC reference no for MICRO cases.} In case the 1st applicant is minor, Guardians PAN / KYC ref no
to be provided. Pls refer to Instruction/KIM for further details.

Verified Copy of PAN


Card enclosed Pl.()

1st Applicant
Guardian (in case 1st applicant is minor)
2nd Applicant
3rd Applicant
Status/Category of the 1st Applicant [Pl. ()]
1.

Resident Individual (RI)

2.

On behalf of minor

RI
NRI

5.

AOP/BOI

10.

Society

15.

6.

Partnership Firm

11.

FIIs

16.

7.

Proprietorship Firm

12.

Government Body

17.

Body Corporate

3.

HUF

8.

4.

Company

9.

&

Listed

Trust

Unlisted 13.
14.

Financial Institution

Know Your Customer (KYC)


Please refer Instruction / KIM for details.

Pl.()

Copy of KYC acknowledgement enclosed


Copy of KYC acknowledgement enclosed
Copy of KYC acknowledgement enclosed
Copy of KYC acknowledgement enclosed

1.
2.
&
PIO

&
Others (pl.specify) _____ 3.
4.
NRI

Banks

Mode of Holding Pl.()

1.
2.
3.

Single
Joint*
Either or Survivor/s

(* Default, in case of ambiguity when applicants


are more than one )

Occupation of the 1st Applicant Pl.()


Private sector service 5. Housewife
Public Sector / Govt. 6. Retired
service
7. Student
Professional
8. Agriculturist
Business
9 Others (pl. specify)
________

US and Canada Investors not permitted.

"
(To be filled in by the investor)

ACKNOWLEDGEMENT SLIP

"
Received an application from Mr./Ms./M/s.
as normal Investment
or through SIP
Scheme Name

JM

Plan

or for SWP
Option

or through STP

as per details below

Sub-Option

Serial No: ED

Payment Details (1st Cheque /DD in case of Regular SIP)

Trust is always the answer

Collection Centres Stamp & Receipt Date and Time

Amt.
Cheque/DD No.
Bank & Branch

dated
Subject to documents being in-order and realization of Cheque/DD

In case of JM Tax Gain Fund, the investor may claim tax exemption under Sec.80C of the IT Act based on the production of this acknowledgement till the statement of account is issued provided the payment instrument is encashed and the application and other documents are found to be in order.

4. Bank Particulars (It is mandatory to furnish bank particulars failing which application shall be rejected . Pls submit documentary proof of the bank mandate depicting the name of the 1st / sole applicant ) Investor
may furnish multiple bank details through a separate stipulated form. Pls refer Instruction / KIM for further details including (!) Auto Direct Credit Facility.
Bank Account No. !

Repeat Bank Account No.!

MICR Code

IFSC Code

Account Type :

Savings

Current

NRE

NRO

FCNR

Bank Name
Branch Address
City

Pin

5-a. INVESTMENT AND PAYMENT DETAILS (Pls refer Instructions/ KIM especially Third Party ) For each application and for each plan/option separate cheque / DD to be submitted.
Cheque /DD No.

Cheque / DD Amount (Rs.)

DD Charges (Rs.)

Gross Total Amount (Rs.)

Bank Account Number

Bank & Branch

Account Type @ (SB/CA/NRE/NRO/FCNR)

** Allotment of units subject to realization of Cheque/DD. @For NRI(s)/PIO: Source of Fund: NRE NRO FCNR Direct Remittances from abroad
Please mention the application no. on the reverse of the Cheque / DD. The details of the bank account provided above pertain to my / our bank account in my / our name Yes No
If No, my relationship with the bank account holder is Spouse Child Parent Relative Sibling Friend Others. Application form without this information is liable to be rejected.
Documents Attached to avoid Third Party Payment Rejection, where applicable: Bank Certificate, for DD
Third Party Declarations

5-b. IN case of payment by 1st applicant (Please )


I.

I / We hereby declare that the above mentioned cheque/Demand Draft^^ has been issued:
from/by debit to my personal/my joint Bank Account with other IInd/IIIrd Applicant.

against cash (in case of demand draft) upto Rs. 50,000/-.

II. ^^In case of Demand Draft, Bankers certificate about the source of funds is attached.

Yes

No (In case, the answer is No ,the application will be rejected)

5-c. Power of attorney (poa) holders / PERMITTED third partys (who is issuing the cheque) details (Pls refer para on Third Party Pament)
The relationship of Ist Applicant with the issuer of Third party Payment instrument is as [Please ]
Parent/Grand Parent/Relative in case of Ist Applicant being a minor
Employer (in case of deduction from salary)

Custodian on behalf of FII/Client.

Full Name of PoA / Third Party


PAN No. of PoA / Third Party

[Please ] KYC Compliant

Yes

No (Please attach KYC acknowledgement & Refer instruction no. 10)

6. DEMAT ACCOUNT DETAILS (Please ensure that the sequence of names as mentioned in the application form matches with that of the Demat Account held with your Depository Participant).
Do you want units in Demat Form (Please ())
Yes
No (if yes, please provide the below details)$$
National Security Depository Limited (NSDL)
Depository Participant Name:
DP ID No. IN
$$

Central Depository Services (India) Limited (CDSL)


Target ID No.

Beneficiary Account No.

in case of any ambiguity, AMC is at its discretion to either allot units as per Demat information or in physical mode. Kindly refer Statement of Additional Information and Scheme Information Document for details.

7. FOR INVESTMENT BY NRI/PIO/FII (US and Canada Investors not permitted)


Overseas Address
City

Pin/ZIP

Country

Applicable to NRIs only : I / We* confirm that I am / we* are Non-Resident of Indian Nationality / Origin and I /we* hereby confirm that the funds for subscription have been remitted from abroad through approved banking channels or from funds in my / our* Non-Resident External /
Ordinary Account / FCNR Account. Please attach foreign inward remittance certificate (FIRC) / account debit certificate in case of debit to NRE / NRO account or direct remittance from abroad. Please (4) Repatriation basis
Non-Repatriation basis

8. SYSTEMATIC INVESTMENT PLAN (SIP) (Please refer to terms, conditions and instructions for SIP & fillup separate form for each SIP date / frequency / plan / option )
(please only one) Normal SIP
M M
Enrolment Period
Start

Micro SIP
Y Y Y

(Available for investors whose contribution through SIP per year will not exceed Rs. 50,000 through all SIP contributions if PAN is not submitted)

End

M M

OR Perpetual(i.e. until it is cancelled)

Payment Mechanism:

Auto Debit Facility (Direct Debit / ECS) (please attach Auto Debit Registration cum Mandate Form along with a cheque towards the first installment)
Auto Debit Facility (through Standing Instructions for HDFC Bank account holder) (Please attach Standing Instruction form of HDFC along with a cheque towards the first installment)
Through Post dated Cheques (please furnish the cheque details below)
Auto Debit Facility (Direct Debit / ECS) (please attach Auto Debit Registration cum Mandate Form, without any cheque) SIP will start only on the SIP opted date after 30 days of submission of valid SIP appln.
Special SIP
SIP DATE (please only one)
1st
5th
10th
15th
20th
25th Frequency (please tick any one) Monthly *
Quarterly
(* Default Frequency)
Regular SIP

No. of cheques / installments

Cheque Nos. : From

SIP Installment amount :

To

Name of Bank & Branch :


Scheme / Plan / Sub-Plan / Option / Sub-Option

To

From

9. SYSTEMATIC TRANSFER PLAN (STP) (Please refer to terms, conditions and instructions for STP) (Please fill up Separate form for from / to different scheme / plans / options / sub-options)

JM

STP installment amount


Enrolment Period: From M M Y
Frequency of Transfer @# (Pl. 4 any one from the following)
Chhota STP/Combo SIP Weekly (pl. any one starting date)
Fortnightly (pl. any one starting date)
R Daily
1st 8th
15th
22nd of the month
1st 15th of every month

Scheme / Plan / Sub-Plan / Option / Sub-Option


Y

Y To M M

OR Perpetual(i.e. until it is cancelled)

Monthly (pl. any one starting date)


1st

5th

10th

15th

20th

Quarterly
25th of the month

1st Business Day of the next month and


subsequently on first of every quarter

choice of multiple frequency under weekly/fortnightly/monthly STP through a single form will be rejected

"

Registar: Karvy Computershare Private Limited: Karvy Plaza, H. No. 8-2-596, Avenue 4 Street No. 1, Banjara Hills, Hyderabad 500 034 Tel No.: 040 2331 2454 / 2332 0251 / 751 Fax No.: 040 - 2331
1968 E-mail: service_jmf@karvy.com Note : All future communication in connection with this application should be addressed to the Registrar at the address given above, quoting full name of First/Sole Applicant, the Application Serial Number,
the name of the Scheme, the amount invested, date and the place of the Branch / Investor Service Centre where application was lodged.

"

JM

10. SYSTEMATIC WITHDRAWAL PLAN (SWP) (Pls Refer to terms, conditions and instructions for SWP)
SWP Plan (Pl. any one):

Fixed Amount Withdrawal (FAW)

Capital Appreciation Withdrawal (CAW)

SWP Installment Amount under FAW: Rs.


Withdrawal Frequency # (Pl. any one):

Monthly

Enrolment Period: From D

M M

1st

5th

15th

25th

To

M M

Quarterly (1st Business day of every quarter after the start)


Y

OR Perpetual (i.e. until it is cancelled)

11. nomination details (Pls Refer instruction / KIM for details)


I / We______________________________________________________________________________ at present do not wish to register nominee/s against the
above folio.
I/We hereby nominate the under mentioned person(s) to receive the amount to my/our credit in the event of my/our death in proportion to the percentage(%) indicated against the Name(s) of
the Nominee(s). I/We also understand that all payments and settlements made to such nominee(s) shall be a valid discharge by the AMC / Mutual Fund / Trustee.
No.

Name & Address of the Nominee /s (upto 3 Nos.)

Date of Birth (in case of Minor)

Relationship with the first holder

Share (%) (in multiple of 1%)

Age of the Nominee

1
2
3

Guardian Name (in case of Minor)

Relationship

Address
City

Pin

Signature of Nominee / Guardian (Not mandatory)

12. LIST OF DOCUMENTS ATTACHED {pls mention below the details of documents (other than cheque & DD) attached with the form}
KYC Compliance Status Proof

Memorandum & Articles of Association

Certificate of Incorporation

List of Authorised Signatories with Specimen Signature(s)

Verified PAN Copy

Resolution / Authorisation to invest

Bye-Laws

Others (Pls Specify) _______________________

Power of Attorney

Trust Deed

Partnership Deed

13. Name of Document Attached for MICRO SIP


1.
2.

Document Ref. No. __________________


Document Ref. No. ____________________________ 3.

Document Ref. No. __________________________

14. DECLARATION & SIGNATURES


Having read and understood the contents of the Scheme Information Document of the scheme for investment and subsequent amendments thereto including the section on Prevention of Money Laundering, I/We hereby apply to the Trustee of JM
Financial Mutual Fund for units of the Scheme as indicated above and agree to abide by the terms and conditions, rules and regulations of the Scheme. I/We have not received and will not receive nor will be induced by any rebate or gifts, directly
or indirectly, in making this investment. I/We further declare that the amount invested by me/us in the Scheme is derived through legitimate sources and is not held or designed for the purpose of contravention of any act, rules, regulations or any
statute or legislation or any other applicable laws or any notifications, directions issued by any governmental or statutory authority from time to time.
It is expressly understood that we have the express authority from our constitutional documents to invest in the units of the Scheme and the AMC/Trustee/Fund would not be responsible if the investment is ultravires thereto and the investment is contrary
to the relevant constitutional documents.
I/we authorise this Fund to reject the application, revert the units credited, restrain me/us from making any further investment in any of the schemes of the Fund, recover/debit my/our folio(s) with the penal interest and take any appropriate action
against me/us in case the cheque(s)/payment instrument is/are returned unpaid by my/our bankers for any reason whatsoever.
I/we hereby further agree that the Fund can directly credit all the dividend payouts and redemption amount to my bank details given above.
The ARN holder has disclosed to me/us all the commissions (in the form of trail commission or any other mode), payable to him for the different competing Schemes of various Mutual Funds from amongst which the
Scheme is being recommended to me/us.
JM Financial Services Pvt. Ltd. is affiliated to JM Financial Asset Management Pvt. Ltd (JM Financial AMC), which is the Investment Manager to the schemes of JM Financial Mutual Fund. It would receive commission/distribution fees from JM Financial
AMC for distributing the mutual fund units of the schemes launched by JM Financial AMC.
(Applicable for SIP Investors only)
I/we hereby declare that the particulars given above are correct and express my/our willingness to make payments referred above through participation in ECS /Direct Debit or Standing Instruction Clearance. If the transaction is delayed or not effected
at all, for reasons of incomplete or incorrect information on my/our part or circumstances beyond the control of AMC/its service provider, I/we would not hold the Asset Management Company responsible in any manner. I/we hereby authorize
JM Financial Mutual Fund and their authorised service providers, to get my/our above bank account debited by ECS /Direct Debit/Standing Instructions towards the collection of monthly/quarterly payments on due SIP dates as opted by me/us.
In the event of any changes in the bank particulars, I/we will submit a fresh mandate along with a cancellation request for the earlier mandate well in advance. I/we have read and agreed to the terms and conditions mentioned in KIM / Scheme
Information Document.* Please strike out whichever is not applicable.

Signature of Sole/First Applicant/Guardian

Signature of Second Applicant

Signature of Third Applicant

Date : _____________________________

Place : _____________________

INSTRUCTIONS TO INVESTORS FOR FILLING UP THE APPLICATION FORM


1. Please read the Scheme Information Document containing the terms of
offer , Scheme Additional Information , Key Information Memorandum
and other relevant documents. Your attention is particularly drawn to
the sections on Prevention of Money Laundering and Mutual Fund
Identification Number. All applicants are deemed to have accepted the
terms upon filling the application form and tendering the payment.
2. The application form is for Resident and Non Resident Indian (NRI) investors
and should be completed in English in BLOCK Letters. Please (4) in the
appropriate box, wherever boxes have been provided.
3. The Signature(s) may be in English or in any of the Indian languages
specified in the Eighth Schedule of the Constitution of India. Thumb
impressions must be attested by a Magistrate or a Notary Public or a Special
Executive Officer under his/her official seal. Applications by minor(s) should
be signed by their guardians. In case of HUF, the Karta should sign on behalf
of the HUF. In case of other non-individual investors, authorized signatories
should sign under their official seal and designation.
4. Application form incomplete in any respect or not accompanied by the
requisite documents and/or Cheque or Demand Draft (DD) for the amount
payable are liable to be rejected and the money paid will be refunded
without any interest thereon. An application may be accepted or rejected
at the sole and absolute discretion of the Trustee, without assigning any
reason whatsoever. In case of inadvertent allotment, the AMC reserves
the right to revert the transaction & refund the investment without any
interest.
5. Investors are requested to indicate their choice of Plans / Sub-Plans/
Options. If no indication in the relevant box is given, the investment will be
deemed to be for the default option. If the mode of payment of dividend is
not indicated, the choice will be deemed to be reinvestment (if available).
However, in case the dividend payable to any unitholder is below Rs. 100/-,
then the same will be automatically reinvested.
6. Mode of Payment: The Cheque/DD should be drawn in favour of the
respective scheme for example in case of JM Equity Fund cheque should
be drawn in favour of JM Equity Fund and crossed Account Payee Only.
Third Party Payments are not acceptable and the application is liable to be
rejected. For further details please refer the KIM. The Cheque/DD should
be payable locally at the centre where the application is deposited. The
Cheque / DD should be drawn on any Bank which is situated at and is a
member / sub-member of the Bankers Clearing House. Cheques / DDs
drawn on a Bank not participating in the Clearing House will not be
accepted. The application form number should be mentioned on the
reverse of the Cheque/DD that accompanies the application. Investors
residing in centres, where the JM Financial Mutual Fund does not have
any collection arrangement, are authorized to make payment by DDs/
RTGS/NEFT/Transfer. DD charges would be borne by the Asset Management
Company (AMC) only in respect of investors having address in locations
where the AMC does not have a branch / ISC (Investor Service Center) or
other collection facilities subject to DD being payable and deposited at any
of the collection centers of JM Financial Mutual Fund/ Registrar & Transfer
Agent / Authorised Collection Banks ( during NFO ) subject to the following
terms and conditions:

Eligibility for DD charges is as under: A - The DD charges will be payable only
for equity schemes during NFO and Post-NFO. B - The DD should be issued
by the bank located in the place of address of the investor. C - DD charges
as levied by State Bank of India would be treated as permissible DD charges.
D - For individuals (For NFO and ongoing subscriptions)The permissible
DD charges for individual investors are not restricted by the number of
applications or the amount invested. E - For Nonindividuals : i - During
NFO: In respect of non-individual investors, during the NFO, the DD charges
will be borne by the AMC as follows : 1- Only one application is eligible
for benefit of DD charges. 2- Irrespective of the amount of investment,
permissible DD charges will not exceed the permissible DD charges as
per SBI rates and as calculated for an investment of Rs.10 lacs or actual
investment whichever is lower, subject to SBI rates. 3- In case of multiple
applications during the NFO period, the DD charges will be paid only for
one of the applications having the highest investment amount subject to
the above limit. ii - For ongoing subscriptions : 1- Only one application per
business day per Scheme/Plan/Option is eligible for benefit of DD charges.
2- Irrespective of the amount of investment, permissible DD charges will not
exceed the permissible DD charges as per SBI rates and as calculated for an
investment of Rs.10 lacs or actual investment whichever is lower, subject
to SBI rates. 3- In case of multiple applications in the same Scheme/Plan/
Option, on a particular transaction day, the DD charges will be paid only
for one of the applications having the highest investment amount subject
to the above limits.

The AMC will, in the normal course, not reimburse the DD charges. However,
the AMC reserves the right to allot equivalent units upto the permissible
DD charges by adding the same to the investment made by the investor, if
so claimed by the investor in the application form subject to the provisions
of the scheme i.e. in multiples of permissible units. In the event that the
total investment including permissible DD charges is not sufficient to allot
minimum number of units in the Scheme, the AMC reserves the right to
refund without any interest the amount represented by the investment
made excluding DD charges borne by investor. In the event of inadvertent
allotment, the AMC reserves the right to revert & reprocess the transactions
without DD charges or refund the investment amount without any interest.
In case of DD charges being claimed, under tax saving schemes, investor

may consult his/her Tax Consultant to determine the investment amount


on which tax exemption can be availed. Note: Returned cheques will not
be presented again for collection, and the accompanying application forms
shall not be considered for allotment. In the normal course, stockinvests /
outstation cheques / outstation drafts are liable to be rejected. However,
if the AMC accepts valid application with outstation cheque/ demand draft
not payable at par at a place where the application is received, closing NAV
of the day on which outstation cheque/demand draft is credited shall be
applicable.
7. For NRI Investors: Repatriable Basis: Payments by NRIs / FIIs / Persons of
Indian Origin (PIO) may be made by either inward remittances through
normal banking channels or out of funds held in Non-Resident External
Rupee Account (NRE)/ Foreign currency Non Resident account (FCNR). In
case Indian Rupee drafts are purchased abroad or from NRE/FCNR Account,
an Account debit Certificate/Foreign Inward Remittance Certificate (FIRC)
from the bank issuing the draft confirming the debit shall be enclosed.
Non-repatriable Basis: Payments by NRIs/ FIIs/Persons of Indian Origin
(PIO) may be made either by inward remittances through normal banking
channels or out of funds held in NRE/FCNR/ Non- Resident Ordinary Rupee
Account (NRO). In case Indian Rupee drafts are purchased abroad or from
NRE/FCNR Account, an Account debit Certificate/FIRC from the bank issuing
the draft confirming the debit shall be enclosed. For Subscription made by
NRE/FCNR/NRO Account cheque, the application form must be accompanied
with photocopy of the cheque/FIRC/Account debit certificate from the
bankers to avoid delay in payment of redemption/dividend proceeds.

13. Duly completed application forms alongwith the payment instrument and
other relevant documents must be submitted on any business day at any of
the JM Financial MF Branches/ Karvy ISCs . The addresses of JM Financial
MF ISCs / Karvy ISCs are provided in the Key Information Memorandum.
14. No receipt will be issued for the application money. The ISCs will stamp and
return the acknowledgment slip in the application form, to acknowledge
receipt of the application.
15. In case of investment(s) in the respective scheme(s) through switch-in(s)
from any other scheme(s) of the fund, the proceeds thereof will be credited
to the scheme as per current applicable service standards and NAVs allotted
as per SEBI guidelines.
16. Mobile / E-mail Communication

Unitholders can obtain financial and non-financial information about
their transactions eg. sale, purchase, dividend declarations, etc. through
SMS Alerts. This facility is offered free of cost to all unitholders whose
mobile numbers are registered with Fund / who register themselves for
the facility by writing to the Registrar and Transfer Agent, mentioning
their folio numbers and mobile numbers. Account Statements / Annual
Reports, etc. can be sent to each Unit holder by courier / post / e-mail. In
case, an investor has provided his e-mail ID in the application form or any
subsequent communication, in any of the folio(s) belonging to him/her,
the Asset Management Company (AMC) reserves the right to use such
e-mail ID as a default mode of communication to the investor including
sending of account statements for the new and existing investments for
folio(s)/ investor(s) concerned. However, the AMC or Registrar & Transfer

NRI / PIO investors residing in US or Canada are not permitted to invest.
Agent will, on receipt of specific request, endeavour to provide the physical
In case, any such investment is accepted inadvertently or in the absence
account statement to the investor within 5 business days from the receipt of
of the residence status, same will be rejected/refunded/redeemed
such request, in terms of SEBI circular No. IMD/ CIR/12/80083/2006 dated
immediately upon detecting such error.
November 20, 2006, on a case to case basis. Unit holders who have provided
8. Statutory Details: As per SEBI Circular nos. IIMARP/ MF/CIR/07/826/98
the e-mail will be required to download and print the documents after
dated April 15, 1998, and IMD/CIR/No. 6/4213/ 04 dated March 1, 2004, it is
receiving e-mail from the Mutual Fund. Should the Unit holder experience
mandatory for applicants to mention their bank details in their applications
any difficulty in accessing the electronically delivered documents / SMS
for purchase or redemption of units. In accordance with Circular dated
alerts, the Unit holder shall promptly advise the Mutual Fund to enable
April 27, 2007 issued by the Securities and Exchange Board of India (SEBI),
the Mutual Fund to make the delivery through alternate means. In case
Permanent Account Number (PAN) issued by the Income Tax authorities
of non-receipt of any such intimation of difficulty within 24 hours from
will be used as the sole identification number for all investors (existing
receiving the e-mail / SMS alert, it will be regarded as receipt of e-mail /
and prospective) transacting in the securities market, including mutual
SMS alert by the Unit holder. It is deemed that the Unit holder is aware of
funds, irrespective of the amount of transaction, with effect from July 02,
all security risks including possible third party interception of SMS alert /
2007. With effect from January 1,2008 it is mandatory for all existing and
e-mail and contents of the SMS alerts / documents becoming known to
prospective investors (including joint holders, guardians of minors, NRIs
third parties. The monthly / quarterly factsheets shall be displayed at the
etc.) to enclose a verified copy of PAN proof along with the application
website of the Mutual Fund. The Unit holders can request for a copy of the
for any transaction in the schemes of JM Financial Mutual Fund. However,
Newsletter/Fact Sheet by post / e-mail. The AMC would arrange to dispatch
submission of PAN copy has been exempted for Micro SIP investors.
these documents to the Unit holder concerned.

The verification of the PAN from the original PAN card/ letter can be done 17. Redemption / Dividend payout mechanism :
by any of the following under his/her signature, rubber stamp and date

It is mandatory to furnish bank particulars of first applicant as per SEBI

any ARN holder if the PAN proof is self attested by Investor
guidelines, failing which application shall be rejected. The application
has to be accompanied with the documentary proof of the bank mandate

Bank Manager,
depicting the name of the 1st / sole applicant. The redemption/ dividend

notary,
proceeds will be either paid through physical payment instrument ( eg

officials of JM Financial Mutual/ Investor Service Centres of Karvy
cheque / payorder /demand draft etc. ) / the AMC will credit the investors
Computershare Pvt. Ltd.
account if the bank mandate registered for the redemption / dividend

Investors transacting through approved Web Portals are also required to
payout is in any of the following banks with which the AMC has direct credit
get their PAN verified by their Web Portals.
facility: - 1 - AXIS Bank 2 - BNP Paribas Bank 3 - Citibank 4 - Deutsche Bank

In case, the investor does not conform to the above requirement of
5 - Development Credit Bank 6 - HDFC Bank 7 - HSBC Ltd. 8 - ICICI Bank
submission of verified copy of PAN or produces original PAN proof for
9 - IDBI Bank 10. Indusind Bank 11 - ING Vysya Bank 12 - Kotak Mahindra
verification or the PAN details as per furnished verified copy of PAN proof
Bank 13 - Royal Bank of Scotland 14-Stanchart Bank & 15 - Yes Bank. The
does not match with the Website of Income Tax Deptt. as prescribed by
AMC may also effect the credit through ECS/RTGS/NEFT (wherever possible),
SEBI, the AMC reserves the right to reject the application before allotment
for those cases, where direct credit facility is not possible subject to the
and refund the investment amount, without any interest.
availability of MICR/IFSC code and complete bank details, as and when for
direct credit facility through ECS/RTGS/NEFT is started by the AMC as one

In case of inadvertent allotment, the AMC reserves the right to refund the
of the default facility.
investment amount, without any interest.

With effect from 1st January, 2012, all investors who wish to make an 18. NOMINATION
investment in a mutual fund scheme will be required to complete the KYC
The nomination can be made only by individuals applying for / holding units
process through any SEBI registered KYC Registration Agency ( i.e. KRA ).
on their own behalf singly or jointly. Non-individuals including Society,
This would also apply to new Systematic Investment Plan (SIP) registrations
Trust, Body Corporate, Partnership Firm, Karta of Hindu Undivided Family,
(including MICRO SIP) as well. For further details on PAN and KYC please
holder of Power of Attorney cannot nominate. Nomination shall not be
refer the KIM.
allowed in a folio held on behalf of a minor. Nomination is mandatory for
new folios/accounts opened by individual. Even those investors who do not
9. Documents required : In case of an application under Power of Attorney
wish to nominate must sign separately confirming their non-intention to
or by a Limited Company, Body Corporate, Registered Society, HUF, Trust
nominate. A minor can be nominated and in that event, the name and
or Partnership Firm, etc. the relevant Power of Attorney or the relevant
address of the guardian of the minor nominee shall be provided by the
resolution or authority to make the application as the case may be, or
unitholder. Nomination can also be in favour of the Central Government,
duly certified copy thereof, along with the Memorandum and Articles of
State Government, a local authority, any person designated by virtue of
Association / Bye-laws / HUF Deed / Trust Deed / Partnership Deed etc. must
his office or a religious or charitable trust. The Nominee shall not be a
be lodged alongwith the application form. The copy of the KYC certificate
Trust, other than a Religious or Charitable Trust, Society, Body Corporate,
must be lodged along with a application form.
Partnership Firm, Karta of a Hindu Undivided Family or a Power of
10. Systematic Investment / Transfer / Withdrawal Plan (SIP/STP/SWP): Please
Attorney holder. A Non-Resident Indian can be a Nominee subject to
refer the KIM for details.
the Exchange Control Regulations of RBI, in force, from time to time.
11. Applicants should indicate their status/category by ticking the appropriate
Nomination in respect of the units stands rescinded upon the transfer of
box. Applications without a tick in the Status/ Category box will be
units. Transfer of units in favour of a Nominee shall be valid discharge by
considered as investment by Others and applicable tax if any, will be
the Asset Management Company against the legal heir. The cancellation
deducted / payable.
of nomination can be made only by those individuals who hold units on
12. Applicants should specify the mode of holding. In case of joint holders,
their own behalf singly or jointly and who made the original nomination.
the first named holder shall receive all the Account Statements, dividend/
On cancellation of the nomination, the nomination shall stand rescinded
redemption/refund warrants and any other correspondence sent from time
and the Asset Management Company shall not be under any obligation to
to time. In case of more than one investor, where the mode of holding is
transfer the units in favour of the Nominee.
not specified, it would be treated as joint holding.

The Multiple Nomination Facility has been provided to enable Unitholders


to nominate more than one person, subject to a maximum of three, in
whom the Units held by the Unitholder shall vest in the event of the demise
of the Unitholder in the ratio as stipulated by investor/s. Accordingly,
multiple nominees can be made per folio.

Existing and new investors can make a fresh nomination which will
supersede all existing nominations in the folio by filing a fresh nomination
form. Nomination is registered / modified / changed only at folio level and
not at scheme / option / plan level. The Multiple Nomination Facility has
been provided as under:

In case of multiple nominations, it is mandatory for unitholders to indicate
the percentage allocation in favour of the nominees in the nomination
forms/ requests letter in whole numbers such that it totals to 100%,
so that the AMC can execute its obligations to the claimants in the
unfortunate event of demise of unitholder/s. If the percentage allocation
is not mentioned or is left blank, the AMC shall apply the default option of
equal distribution among all the nominees as designated by the deceased
Unitholder/s. In case of 3 nominees, where allocation is not defined, the
allocation by default will be 34%,33% and 33% respectively for each
nominee in the sequential order.
19. The minor shall be the first and the sole holder in an account. There
shall not be any joint accounts with minor as the first or joint holder. The
Guardian in the folio on behalf of the minor should either be a natural
guardian (i.e. father or mother) or a court appointed legal guardian. For
further details and documents to be submitted please refer the KIM.
20. Transaction Charges
AMC will deduct the following transaction charges if the Broker/
Distributor has opted-in for such charges at Product Level as per the
choice of Broker/Distributor.
(i) First Time Mutual Fund Investor (across Mutual Funds):
Transaction charge of Rs. 150/- for subscription of Rs. 10,000 and
above will be deducted from the subscription amount and paid to the
distributor/ agent of the first time investor and the balance shall be
invested.
(ii) Investor other than First Time Mutual Fund Investor:
Transaction charge of Rs. 100/- per subscription of Rs. 10,000 and
above will be deducted from the subscription amount and paid to the
distributor/ agent of the investor and the balance shall be invested.
Transaction charges (Rs. 150/- or Rs. 100/- as may be applicable) in
case of investments through Systematic Investment Plan (SIP) shall be
deducted only if the total commitment (i.e. amount per SIP installment
x No. of installments) amounts to Rs. 10,000/- or more. The Transaction
Charges shall be deducted in 4 installments. Investors may note that
distributors have an option to opt in or opt out of charging the transaction
charge.
(iii) T ransaction charges shall not be deducted for:
(a) purchases /subscriptions for an amount less than Rs. 10,000/-;
(b) transaction other than purchases/ subscriptions relating to new
inflows, such as Switch, STP, etc.
(c) purchases/ subscriptions made directly with the Fund (i.e. not through
any distributor/agent).
(d) Transactions, wherein the concerned distributor has not opted-in for
transaction charges.
(e) Transactions done for units held in demat form.
It is also clarified that minimum investment criteria shall be monitored
at the gross investment amount level (i.e. amount before deducting
transaction charges).
DIRECT PLAN
W.e.f January 1, 2013, the investor has the option to invest under the Direct
Plan of any of our open-ended Schemes to avail the benefit of lower expense
ratio for which Investor must clearly write the word Direct under the column
Plan alongwith Scheme and Option name in the specified place .
The existing investors may switch their current holdings in the Existing
Plan into the respective/other options of the Direct Plan of the same/other
scheme/s (subject to the applicable exit load/taxes e.g. STT etc) by submitting
the switch request duly signed by the respective investor/s.
For detailed information, Investor may refer to the KIM (Key Information
Memorandum).
In terms of Best Practice Circular no. 20/2010-11 dated February 9,
2011, following provisions are applicable w.e.f. April 1, 2011:
1. On Behalf of Minor Accounts: Where the account/folio (account) is
opened on behalf of a minor:
(a) The minor shall be the first and the sole holder in an account. There shall
not be any joint accounts with minor as the first or joint holder.
(b) The Guardian in the folio on behalf of the minor should either be a natural
guardian (i.e. father or mother) or a court appointed legal guardian.
Information on the relationship/status of the guardian as father, mother
or legal guardian should be provided to the AMC/ the Registrar of JM
Financial Mutual Fund (the Registrar). If the documents mentioned in
clause (c) below do not provide information evidencing the relationship
of natural guardian to the minor, separate documents establishing
the relationship should be provided. In case of court appointed legal
guardian, supporting documentary evidence should be submitted.
(c) Date of birth of the minor along with photocopy of supporting documents
as enumerated below shall be mandatory while opening the account on

behalf of minor:
1. Birth certificate of the minor, or
2. School leaving certificate / Mark sheet issued by Higher Secondary
Board of respective states, ICSE, CBSE etc., or
3. Passport of the minor, or
4. Any other suitable proof evidencing the date of birth of the minor.
2. Minor Attaining Majority Status Change:
(a) Prior to minor attaining majority, the AMC/ Registrar will send advance
notice to the registered correspondence address advising the guardian
and the minor to submit an application form along with prescribed
documents (as per (e) below) to change the status of the account to
major.
(b) The account shall be frozen for operation by the guardian on the day the
minor attains the age of majority and no transactions shall be permitted
till the documents for changing the staus are received. However, the
AMC will continue to process the existing standing instructions like SIP,
STP, SWP registered prior to the minor attaining majority and send a
intimation to that effect.
(c) In case of existing standing instructions including STP, SIP and SWP
registered prior to the minor attaining majority, the AMC will send
an advance notice to the registered correspondence address advising
the guardian and the minor that the existing standing instructions
will continue to be processed beyond the date of the minor attaining
majority till the time a instruction from the major to terminate the
standing instruction is received by the mutual fund along with the below
mentioned documents:
1. Services Request form, duly filled and containing details like name of
major, folio numbers, etc.
2. New Bank mandate where account changed from minor to major,
3. Signature attestation of the major by a manager of a scheduled bank /
Bank Certificate/ Letter,
4. KYC acknowledgement of the major.
The standing instruction shall be terminated within 30 days from the date
of receiving the instruction.
(d) List of standard documents required to change the account status from
minor to major:
1. Services Request form, duly filled and containing details like name of
major, folio numbers, etc.
2. New Bank mandate where account has been changed from minor to
major,
3. Signature attestation of the major by a manager of a scheduled bank /
Bank Certificate / Letter,
4. KYC acknowledgement of the major.
3. Change in Guardian: When there is a change in guardian either due to
mutual consent or demise of existing guardian, following documents
should be submitted to the AMC/ the Registrar prior to registering the
new guardian:
(a) Request letter from the new guardian,
(b) No Objection Letter (NoC) or Consent Letter from existing guardian or
Court Order for new guardian, in case the existing guardian is alive.
(c) Notarized copy or attested copy of the Death Certificate of the deceased
guardian, where applicable. The attestation may also be done by a special
executive magistrate, AMC authorised official or manager of a scheduled
bank.
(d) The new guardian must be a natural guardian (i.e. father or mother) or a
court appointed legal guardian.
1. Information on the relationship/status of the guardian as father,
mother or legal guardian should be specified in the application form.
2. In case of natural guardian, a document evidencing the relationship if
the same is not available as part of the documents submitted as per sub
clause c of clause 1 of this notice cum addendum
3. In case of court appointed legal guardian, supporting documentary
evidence should be submitted.
(e) Bank attestation attesting the signature of the new guardian in a bank
account of the minor where the new guardian is registered as the
guardian.
(f) KYC of the new guardian.
4. Nomination facility
(a) Nomination should be maintained at the folio or account level and should
be applicable for investments in all schemes in the folio or account.
(b) Where a folio has joint holders, all joint holders should sign the request
for nomination/cancellation of nomination, even if the mode of holding
is not joint. Nomination form cannot be signed by Power of attorney
(PoA) holders.
(c) Every new nomination for a folio/account will overwrite the existing
nomination.
(d) Nomination shall be mandatory for new folios/accounts opened by
individual especially with sole holding and no new folios/accounts for
individuals in single holding will be opened without nomination.
1. Even those investors who do not wish to nominate must sign separately
confirming their non-intention to nominate.
(e) Nomination will not allowed in a folio held on behalf of a minor.
5. Transmission: We have set out below the list of the documents required

for transmission under various situations:


a. Transmission to surviving unit holders in case of death of one or more
unitholders:
1. Letter from surviving unitholders to the Fund / AMC / RTA requesting
for transmission of units,
2. Death Certificate in original or photocopy duly notarized or attested by
gazette officer or a bank manager,
3. Bank Account Details of the new first unit holder as per specified
format along with attestation by a bank branch manager or cancelled
cheque bearing the account details and account holders name.
4. KYC of the surviving unit holders, if not already available.
b. Transmission to registered nominee/s in case of death of Sole or All unit
holders:
1. Letter from claimant nominee/s to the Fund / AMC / RTA requesting for
transmission of units,
2. Death Certificate/s in original or photocopy duly notarized or attested
by gazette officer or a bank manager,
3. Bank Account Details of the new first unit holder as per specified
format along with attestation by a bank branch manager or cancelled
cheque bearing the account details and account holders name.
4. KYC of the claimant/s,
5. If the transmission amount is Rs One Lakh or more:

a. Indemnity duly signed and executed by the nominee/s in the
specified format.
c. Transmission to claimant/s, where nominee is not registered, in case of
death of Sole or All unit holders:
1. Letter from claimant/s to the Fund / AMC / RTA requesting for
transmission of units,
2. Death Certificate/s in original or photocopy duly notarized or attested
by gazette officer or a bank manager,
3. Bank Account Details of the new first unit holder as per specified
format along with attestation by a bank branch manager or cancelled
cheque bearing the account details and account holders name.
4. KYC of the claimant/s,
5. Indemnity Bond from legal heir/s as per specified format.
6. Individual affidavits from legal heir/s as per specified format
7. If the transmission amount is below Rs. One Lakh any appropriate
document evidencing relationship of the claimant/s with the deceased
unitholder/s.
8. If the transmission amount is Rs One Lakh or more any one of the
documents mentioned below:

a. Notarised copy of Probated Will, or

b. Legal Heir Certificate or Succession Certificate or Claimants
Certificate issued by a competent court, or

c. Letter of Administration, in case of Intestate Succession.
d. Transmission in case of HUF, due to death of Karta: HUF, being a Hindu
Undivided Family, the property of the family is managed by the Karta and
HUF does not come to an end in the event of death of the Karta. In such a
case, the members of the HUF will appoint the new Karta who needs to
submit following documents for transmission:
1. Letter Requesting for change of Karta,
2. Death Certificate in original or photocopy duly notarized or attested by
gazette officer or a bank manager,
3. Duly certified Bank certificate stating that the signature and details
of new Karta have been appended in the bank account of the HUF as per
specified format
4. KYC of the new Karta and KYC of HUF, if not already available.
5. Indemnity bond signed by all the surviving coparceners and new Karta
as per specified format.
6. In case of no surviving co-parceners and the transmission amount is
Rs One Lakh or more OR where there is an objection from any surviving
members of the HUF, transmission shall be effected only on the basis of
any of the following mandatory documents:
a. Notarized copy of Settlement Deed, or
b. Notarized copy of Deed of Partition, or
c. Notarized copy of Decree of the relevant competent Court
e. Clarifications
1. It is clarified that PAN card copy or another proof of identity of
claimant/s is not required separately if KYC acknowledgement issued by
CVL is made available.
2. Where the units are to be transmitted to a claimant who is a minor,
various documents like KYC, PAN, Bank details, indemnity should be of
the guardian of the nominee.
f. Additional risk mitigation measures:
While the list of documents mentioned in sub-clauses a to d above
shall be taken in all cases, the AMC/ the Registrar may seek additional
documents if the amount involved in transmission exceeds Rs One Lakh
on a case to case basis. The AMC/ the Registrar may also ask additional
document depending on circumstances of each cases.

SYSTEMATIC INVESTMENT PLAN (SIP through auto debit)Please attach the scheme application form duly filled & signed
Name & ARN of Distributor

Internal Sub-Broker Code (as alloted by Distributor)

Sub-Broker ARN

Trust is always the answer

Employee Unique Identification No. (EUIN)^

^Mandatory: Furnishing of EUIN is mandatory for all transactions (Purchase/Switch/SIP/STP) or following declaration should be signed by the investor (Please the box).
Declaration: I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this transaction is executed without any interaction or advice by the employee/relationship manager/sales person of the above distributor/sub broker or
notwithstanding the advice of in-appropriateness, if any, provided by the employee/relationship manager/sales person of the distributor/sub broker.

Signature of Sole/First Applicant/Guardian

Signature of Second Applicant

Signature of Third Applicant

Upfront commission shall be paid directly by the investor to the AMFI registered Distributor based on the investors assessment of various factors including the service rendered by the distributor.

AUTO DEBIT (ECS / DIRECT DEBIT) REGISTRATION CUM MANDATE FORM


New Regular SIP:First Installment of Regular SIP through a Cheque and subsequent investments via Electronic Clearing Services (ECS) (for all Banks in select cities only) / Direct Debit (for select Banks only) as per overleaf.
New Special SIP: First & subsequent installments of Special SIP via ECS or Direct Debit. Application should be submitted at least 30 days before the 1st SIP installment.
Renewal/Continuation of existing SIP only if last SIP installment as per current registration is not yet over (pls fill fresh details in following columns).

INVESTMENT DETAILS
Folio No. (for existing unitholders)

Application No. (for new Applicant)

Name of Sole/1st Applicant/Minor/Non-individual Mr./Ms./M/s.


E-mail ID (Capital Letters): _______________________________________________________________________ Mobile No.:
Scheme :

Plan :

SIP Installment Amount (Rs.)


SIP Period : Start :


M M

SIP Dates (Pl. 3any one) :

01st

Frequency (please tick any one) : Monthly *


End : M M

05th

10th

Option

15th

20th

Quarterly

(* Default Frequency)

OR Perpetual(i.e. until it is cancelled)

25th of the month (Note : Minimum 30 days are required for 1st installment through auto debit to register and start)

The ARN holder has disclosed to me/us all the commissions (in the form of trail commission or any other mode), payable to him for the different competing Schemes of various Mutual Funds from amongst which
the Scheme is being recommended to me/us.

BANK ACCOUNT DETAILS


The Branch Manager
Bank Name &

: ______________________________________________________________________________________________________________

Address

: _____________________________________________________________________________________ PIN Code

Bank Account Number

9-digit MICR Code (Mandatory) :

Account Type :

Savings

Current

NRE

NRO

FCNR

(At PAR MICR Code not valid for ECS - e.g MICR code starting and / or ending with 000)

Mandatory Enclosures

Blank Cancelled Cheque

Copy of Cheque

This is to inform you that I/we/the bank account holder/s have registered with JM Financial Mutual Fund through their authorised service provider for the RBIs Electronic Clearing Service (Debit Clearing)/Direct Debit Facility and that the payment towards
the above investment in JM Financial Mutual Fund shall be made from my/our above mentioned account with above bank & branch. Further, I/we authorize the representative carrying this ECS/Direct Debit/Standing Instruction mandate to
get the same verified and executed. I/We hereby authorize you to debit my/our account for making payment to JM Financial Mutual Fund through AUTO DEBIT (through Electronic Clearing Service / DIRECT DEBIT for collection of SIP
payments.) as per the details furnished as above.
For Auto Debit (Direct Debit) cases In case, the SIP is not considered as a valid SIP by the JM Financial AMC as per the provisions of the scheme at any point of time during the currency of SIP, I/we authorise them to cancel/
stop my/our subsequent SIP installments. I/We, also authorize you to cancel my/our SIP mandate on receipt of such a request from JM Financial AMC to stop debiting my/our account for subsequent installments.
Name/s & Signature/s in Order & mode of operation as per Banks Records

First/Sole holder

Name
Signature

Third Holder
D

Name
Signature

Second Holder

Date:

Name /s & Signature/s in Order & mode of operation as per JM Financial Mutual Funds records

Signature

Name
M M

M M

Place:

FOR OFFICE USE ONLY (Not to be filled in by Investor)


Recorded on

"

Scheme Code

Recorded by

Credit Account Number

Bank Mandate Ref. No.

Investor Ref. / Folio No.

Bankers Attestation for ECS/ Direct Debit


Folio No. of JM Financial Mutual Fund:
Bank Account Number :

Certified that Signature of account holder(s) and the details of Bank Account are correct as per records

Signature of Authorised Bank Official with his Name, Official Seal & Date

"

TERMS, CONDITIONS AND INSTRUCTIONS


FOR SYSTEMATIC INVESTMENT/TRANSFER/WITHDRAWAL PLANS
The existing and prospective Investor/s is/are advised to refer to the Scheme Information Document/s and Key Information
Memorandum of the respective scheme(s) carefully before applying for the enrollment under the Systematic Plan/s.
The facilities under Systematic Plans are available to investors in all the open-ended schemes of JM Financial Mutual
Fund except for STP/SWP from JM Tax Gains Fund during the initial lock-in period of 3 years. These facility is subject to
changes from time to time.
The Clause on Minimum Investment Criteria as specified in the Scheme Information Document of the respective
scheme/plan/option/sub-options will not be applicable for investments made through the first installment of Systematic
Investment /Transfer Plan . For example, the minimum investment amount for investment in JM Basic Fund is Rs.5,000/-.
However, in case of investment through SIP/STP (Systematic Investment/Transfer Plan) , an investor can invest with
minimum installment amount of Rs.500/- on more per month or Rs. 3000/- or more per quarter or opt for Chhota STP
for Rs 100/- so as to meet the Minimum Investment Amount over the opted period.
All applicants are deemed to have accepted the terms and conditions, mentioned below and in the Scheme Information
Document /addendum/ KIM, upon submitting the valid application form with other requisites for investment under
Systematic Plans.
The terms & conditions for respective Systematic Plans are mentioned hereunder:
A. SYSTEMATIC INVESTMENT PLAN(SIP)
JM Financial Mutual Fund offers two types of Systematic Investment Plans i.e. Normal SIP and Micro SIP under
Regular and Special SIP facilities on Monthly and Quarterly basis on any of the six SIP dates during any month i.e.
1st, 5th, 10th, 15th, 20th or 25th.
I. Normal SIP: Under normal SIP, the investor is required to furnish copy of KYC Acknowledgement & PAN Card in
addition to other documents as mentioned hereunder in subsequent points.
II. Micro SIP: Under Micro SIP, the investor is exempted to furnish the copy of PAN Card provided his total contribution
through Micro SIP (including all schemes/dates etc) does not exceed Rs. 50,000/- during any financial year or on a
rolling period of 12 months. However as mentioned in the Key Information Memorandum all unit holder have to be
KYC compliant and submit KYC acknowledgement issued by KRA. This facility is available only to individual investors
including Minors & NRIs and Sole Proprietorship firms. Other categories including PIOs, HUFs, non-individuals etc
are not eligible .. Micro SIP investors have to be KYC compliant (through SEBI appointed KRA) and should attach
KYC form, proof of identity , address etc alongwith purchase application and cheque. Please refer to para on KYC
process.
The minimum investment criteria will not be applicable in case any Micro SIP application is found to
be invalid and the amount collected initially will remain in the folio . However, redemption will be
permitted for the same.
Other terms and conditions of Normal SIP remain unchanged and are applicable for Micro SIP investors as well.
Investment under SIP can be done through any of the following :
1. Regular SIP
or
2. Special SIP
1. Regular SIP : An investor can opt Regular SIP and chose any of the following modes of payments:
a. Auto Debit Facility:
Based on the valid application submitted alongwith a payment instrument towards 1st installment of SIP, the
investor will be registered and his SIP will start under Regular SIP facility. However, the contribution through Auto
Debit Facility (through any of the following modes) will start from second installment onwards due to the fact that
approx. 30 days time is required for registration of Auto Debit Mandates with Investors Bank across India. Such
registrations are subject to the terms and conditions applicable for the date of submission of valid SIP application
with required documents and payment instrument. For HDFC Bank Account Holders, there is a separate Standing
Instructions Form, which needs to be submitted instead of normal Auto Debit Form.
i. ECS Debit Facility : is available in all ECS locations of RBI and covers all banks participating in ECS clearing in those
locations. Presently ECS debit facility is available in 87 locations as mentioned in point no. 3 below.
ii. Direct Debit Facility is available with certain selected banks with which the AMC has made arrangements. At
present, AMC has a tie-up with 4 Banks i.e. Axis Bank, ICICI Bank, IDBI Bank, and Standard Chartered Bank.
iii. Standing Instructions Facility with HDFC Bank for HDFC Bank Account Holders only:
b. Post Dated Cheques :
An investor can subscribe to SIP facility in other than ECS locations/Direct Debit/Standing Instructions Bank by
depositing Post-dated cheques for the opted period if his bank participates in the local clearing of the locations on
which the cheques are drawn in any part of India where AMC has made arrangements. However, the first cheque/
demand draft should be drawn & payable at the place where the application is being submitted. Presently, this
facility is available in more than 400 locations across India in addition to locations covered through ECS facility.
2. Special SIP : In order to simplify the procedure, an investor may subscribe to SIP without even submitting the
cheque/demand draft towards first installment as is required under Regular SIP. The first installment will also be
debited through Auto Debit (ECS/Direct Debit) process. While all other terms and conditions of Regular SIP will be
applicable for Special SIP as well except for the following changes :
i. There is no need to submit cheque/demand draft towards Ist installment . The SIP account can be opened without
any investment i.e. with Zero balance.
ii. A minimum 30 days gap is required from the date of submission of valid application and required documents and
the opted SIP date in order to enable the Registrar to complete the process of registration of mandate at their end
and at the end of Banks.
iii. The investment through Special SIP will be subject to the terms and conditions (including loads etc) as are
applicable on the Ist SIP due date and not as applicable on the date of submission of documents.
3. ECS locations : Agra Ahmedabad Allahabad Amritsar AnandAsansol Aurangabad Bangalore Baroda
BhavnagarBelgaum Bhilwara Bhopal Bhubaneshwar Bijapur Bikaner Burdwan Calicut Chandigarh
Chennai Cochin Coimbatore Cuttack Davangeree Dehradun Delhi Dhanbad Durgapur Erode Gadag
Gangtok Gorakhpur Gulbarga Guwahati Gwalior Hassan Hubli Hyderabad Indore Jabalpur Jaipur
Jalandhar Jammu Jamnagar Jamshedpur Jodhpur Kakinada Kanpur Kolhapur Kolkata Kota
Lucknow Ludhiana Madurai Mandya Mangalore Mumbai Mysore Nagpur Nasik Nellore Panjim Patna
Pondicherry Pune Raichur Raipur Rajkot Ranchi Salem Shimla Shimoga Siliguri Solapur Surat Tirupati

"


4.

5.

6.
7.

8.
9.

10.
11.

Tirupur Trichur Trichy Trivendrum Tirunelveli ..Tumkur Udaipur Udupi Varanasi Vijayawada (also covers
Guntur, Tenali & Mangalgiri) Vizag.
The prospective investor is advised to contact the Investor Service Centres (ISCs) managed by the offices of JM
Financial Mutual Fund or Registrar M/s Karvy Computershare Pvt. Ltd for an updated status and for current list of
Banks accepting Direct Debit mandates or for the list of cities where ECS facility is available.
The list of cities/banks for Auto Debit (through ECS/Direct Debit/Standing Instruction) as mentioned above may be
modified/updated/changed/removed at any time in future, entirely at the discretion of JM Financial Mutual Fund
without assigning any reason or prior notice to investors. In case of removal of any city/bank from the current list,
the Auto SIP instructions for investors in such locations/banks will stand automatically discontinued without any
prior notice.
A separate form is required for each SIP date/Scheme/Plan/Option/Sub-Option. Choice of multiple dates/Schemes/
Plans/Options/Sub-options through single Form is not permitted. In case, an investor wishes to opt for multiple
SIP dates/Schemes/Plans/Options/Sub-options in the same month, he may do so by submitting separate Scheme
Application-cum-SIP Mandate Forms for each such SIP due dates/options with separate set of post dated cheques/
Auto Debit (ECS/Direct Debit/Standing Instructions) forms and Account Opening Cheque(s)/Demand Draft(s) for
regular SIP. Any single application if received with multiple SIP choices will be summarily rejected and the amount
of initial investment refunded without any interest, if the amount of the same is less than the minimum investment
limit fixed for particular Scheme/Plan/Option/sub-option. However, in case the investor is permitted to choose all
the six permitted SIP dates through single form.
A Minimum of 30 days time is required for the next installment of SIP through post-dated cheques/Auto Debit
(ECS/Direct Debit/Standing Instructions ) to take place after the initial application for each SIP date (if opted for
multiple dates).
Under Regular SIP, the first investment has to be made through physical cheque/DD payable locally at the place of
submission of the application. The first cheque/DD has to be of any valid date and not a post dated one on the date
of submission. However, in case of remaining post-dated SIP cheques, from 2nd installment onwards, the cheques
must contain the opted SIP dates for the entire remaining period out of the permissible SIP dates i.e. 1st, 5th, 10th,
15th, 20th or 25th of a month. Similarly, in case of SIP through Auto Debit (Direct Debit/ECS/Standing Instructions),
the investor should choose any of the above mentioned six SIP dates. Similarly, the frequency of SIP (i.e. Monthly/
Quarterly) needs to be specified clearly , failing which Monthly frequency will be taken as the default frequency.
The second SIP installment of the same opted SIP due date should not fall in the same calendar month.
The applicable NAV for all SIP installments under Liquid Funds will be of the day when the funds get cleared and
are available to AMC for utilization. For non-liquid schemes, the date of submission of SIP request if the payment
instrument is payable locally and in case of outstation payment instrument, the date of availability of funds for
utilization by the AMC will be considered for the allotment of NAV in case the instrument is realised. Subsequently,
the opted due dates will be considered for allotment of NAV, irrespective of the date of realization for SIP investments
under Non-liquid scheme. In case of Special SIP, the opted SIP due date will be the Ist and subsequent SIP date if the
SIP due date is after 30 days time of making initial application.
In case, any particular SIP due date falls on a non-business day or falls during a book closure period, the immediate
next business day will be considered for the purpose of NAV application accordingly.
An investor will have to mandatorily abide by the following criteria with regard to Minimum Installment Amount
and Minimum Number of Opted & completed installments for normal SIP.
Frequency
Monthly
Monthly
Quarterly

Amount per Installment (Rupees in whole


Numbers) *
Rs. 500 to Rs. 999 per month
Rs. 1000 or more per month
Rs. 3000 or more per quarter

Minimum Mandatory Installments*


12 or more out of which 10 installments must be effected
6 or more out of which 5 installments must be effected
2 or more where atleast 2 installment must be effected

*These conditions are to be fulfilled in addition to other conditions for each SIP cycle independently , failing which the
respective SIP will be treated as invalid and will be subject to refund/auto redemption/revertal & reprocessing etc as per
the discretion of the AMC. No two or more SIP cases will be clubbed to determine the fulfillment of Minimum Investment
Criteria.
12. In order to be treated as a valid SIP application, minimum investment amount criteria as per the Scheme Information
Document of the respective scheme e.g Rs. 5,000/- should be received by the AMC as per details mentioned in
the above table during the opted period. However, the SIP will be treated as discontinued as per the discretion
of the AMC if AMC does not get the funds for any 5 (five) consecutive SIP installments due to any reasons directly
attributable to investor or his banker i.e insufficiency of funds, instruments not drawn properly, payment stopped by
investor or due to one time rejection with the reason like Bank Account Closed etc or minimum investment criteria
is not met before the discontinuation due to the above or any other reasons, anytime during the opted period .
13. In the event of non-receipt of fund for the first investment/Ist SIP installment itself due to dishonour of the cheque ,
the SIP will automatically be treated as discontinued ab initio. * The AMC has the discretion to convert regular SIP
to Special SIP as per the conversion condition.
14. All SIP Installments including the first one i.e. initial investment are required to be of the same amount failing
which the investment will not be treated as a valid SIP investment and will be subject to the terms and conditions
of normal investments.
15. In the event of any of the installment amount being different, the AMC will treat all SIP installments as normal
investments and these will be subject to normal load and other provision as applicable on the respective dates of
investments. In order to treat such installments as normal investments, the AMC reserves the right to revert and
reprocess all previous SIP installments besides discontinuation of SIP for future installments or alternatively the
AMC may recover the exemptions/benefits directly from investor or by redeeming the equivalent units from the
respective folio. In addition, the AMC will also charge exit load as applicable on the normal investment based on the
dates of respective SIP installments. In the event of non-fulfillment of minimum subscription criteria due to nonfulfillment of the other conditions or discontinuation of the SIP on the request by the investor , the AMC reserves the
right to redeem/refund with current valuation on the date of review by the AMC.
16. For Regular SIP, the 1st SIP cheque/DD will be considered as Account Opening cheque for existing and new investors.
Besides Auto Debit Form/PDCs, the existing investor is required to submit the Common Application Form containing
the existing folio number, opted Scheme/Plan/Option Name with opted SIP dates and amount. The remaining
fields may only be filled if any updation/change is required.

"

17. To subscribe to SIP, an Investor has to submit the following documents:


i. Scheme Application cum SIP Registration Form
ii. Locally Payable Cheque/DD for Initial Investment cum 1st SIP Installment Amount subject to the minimum
amount/number of installment as per above mentioned table for Regular SIP . The investor should write the SIP
Form/Folio number / the first applicants name on the reverse of the cheque/s accompanying the SIP Form. No need
to submit any payment instrument towards first installment in case of Special SIP
iii. Post-dated cheques for remaining period drawn on any city in India OR
iv. Auto Debit (through ECS/Direct Debit) Registration cum Mandate Form OR
v. Standing Instructions Mandate by HDFC Bank Account Holders
vi. A photo copy of the cheque/cancelled cheque from the same account where future installments are to be debited
if opted for SIP through Auto Debit (through ECS) .
vii. Copy of KYC acknowledgement issued by SEBI registered KYC Registration Agency (KRA)
viii PAN card (exempted for Micro SIP)
18. As per SEBI guidelines and as per Rule 114 (B) of Income Tax Rules, 1962, it is mandatory for every/all the joint
investor/s to submit verified copy of his/her/their PAN Card for all investments irrespective of the amount involved
including SIP while opening the SIP Account. Even NRI investor is also required to submit the same. However , for
Micro SIP, the submission of PAN Card copy has been exempted.
19. If the investment is in the name of a minor, the verified copy of PAN Card of the minor or his father or mother or legal
guardian, who represents the minor, should be submitted.
20 The investor will not hold JM Financial Asset Management Pvt Ltd., its Registrars and other service providers
responsible, if the transaction is delayed or not effected or the investors bank account is debited in advance or after
the specific SIP date due to various cycles of ECS/Clearing.
21. The investor/s agree/s to abide by the terms and conditions of ECS facility of Reserve Bank of India (RBI) in case of
SIP through ECS.
22. With the launch of Direct Plans effective from January 1, 2013, the units of subsequent SIP installments will be
allotted under the corresponding option of the Direct Plan of the concerned Scheme if no Broker/ARN code is
appearing against the respective SIP.
Conversion of Regular SIP to Special SIP: Refer KIM
Renewal / Continuation of existing SIP: In case, the existing SIP investor is willing to continue/extend his/her/their
existing SIP in the same plan of the same scheme for further period of 6 or more months, he/she/they may do so by: For
details please refer the KIM:
1. Auto Debit (ECS/Direct Debit): Submitting a fresh Auto Debit (ECS/Direct Debit) Form before the expiry of last SIP
due date to avoid break in SIP period and render it to be invalid (fresh Common Application Form is not required).
2. Standing Instruction: In case of HDFC Bank account holder by submitting a fresh Standing Instruction Form with
Common Application Form and cheque towards first installment before the expiry of last SIP due date to avoid break in
SIP period and render it to be invalid.
3. Post Date Cheque: Submitting the fresh set of PDCs with fresh signed Common Application Form by filling fresh SIP
details and change if any.
Discontinuation of SIP
For ECS/Direct Debit cases : For discontinuation of SIP through ECS / Direct debit, the unitholder is required to intimate
the AMC / Registrar at least 15 calendar days prior to the next installment for the respective due date. However, such SIP
installment will remain live until the investors banks confirms having noted the cancellation of debit instructions given
by the investor under Direct Debit/Standing Instruction.
For Standing Instruction of HDFC Bank cases: The investors will have to fill up Standing Instruction Form with
cancellation option and submit to AMC and/or register at least 15 calendar days prior to the next installment based on
which the Registrar will take up the matter with HDFC Bank to register the cancellation request and to stop future SIP
For Post Dated Cheques: In case of physical post-dated cheques, the minimum notice period for discontinuation is 30
calendar days. On receipt of valid SIP cancellation request, However, the AMC/Registrar will try to discontinue the SIP
for remaining period on best effort basis due to the time and process involved and the balance post dated cheques if any
will be returned to the investor
Termination of SIP: In the event of not meeting any one or more of the criteria, the SIP will stand terminated and
the investor will be required to make a fresh SIP application if he is desirous of availing this facility in future also. The
fresh application will be subject to the terms and conditions of the respective scheme/plan/ option as on the date of
submission of the fresh application.
B. SYSTEMATIC TRANSFER PLAN (STP) / SYSTEMATIC WITHDRAWAL PLAN (SWP)
(These facilities are available only for Open-ended Schemes (other than JM Tax Gain Fund wherein only STP-in is
available. The STP-out and SWP under JM Tax Gain Fund is permitted after the completion of 3 year lock-in period from
the date of allotment.)
1. STP provides for transfer of specified amount from one scheme/plan/option in which the original investment is
made to any other scheme/plan/option of JM Financial Mutual Fund, at the end of specified periodic interval viz.,
i. Daily (Chhota) STP/Combo SIP (on all business days) .
ii. Weekly (i.e.1st, 8th, 15th & 22nd )
iii. Fortnightly (i.e. Ist and 15th)
iv. Monthly (1st, 5th , 10th, 15th , 20th and 25th ) or
v Quarterly ( on 1st Business Day of the next month & subsequently on first of every quarter) .
2. SWP provides for
i. withdrawal of capital appreciation (Capital Appreciation Withdrawal (CAW)) over the opted period or
ii. withdrawal of specifc amount (Fixed Amount Withdrawal) (FAW) by redemption from a scheme at the end of a
specifc interval .
Under SWP, the frequency can be either
a. Monthly (1st, 5th , 10th, 15th , 20th and 25th ) or
b. Quarterly (i.e Ist Business Day of every quarter after the start)
3. In order to start the STP/SWP the investor must have investment equivalent to or more than the Minimum
Investment Amount (whichever is higher) in the scheme/plan/option concerned on the Ist opted STP/SWP date.
However, the investor is not required to maintain the same balance after processing the Ist STP/SWP installment.
The last installment may be equivalent to or less than the opted installment amount.

3. Minimum amount for transfer and available dates for STP are as under :
Frequency

Amount per
installment$

Starting dates
Minimum
during any month mandatory
Installments
(equal amount)

Minimum period
required to start
Ist STP/extend
the STP after
receiving the
request

Revertal and
Reprocess
with load or
recovery of load
if following
conditions are
not met@

Daily (Chhhota Rs. 100/-$


STP/ Combo
SIP)

Any business day

Min 15 calendar
days

If 50 out of first 90
installments could
not be effected

Weekly

Rs. 1000/-

1st, 8th, 15th, 22nd


6
(after 22nd the
next date will
automatically be 1st
of next month)

Min 15 calender
days

If five installments
out of the first six
installments could
not be effected.*

Fortnightly

Rs. 1000/-

1st and 15th

As above

As above

Monthly

Rs. 1,000/-

1st, 5th 10th 15th 20th


& 25th

As above

as above

Quarterly

Rs. 3,000/-

60

1st Business Day


2
As above
If the first two
of the next month
installments are
subject to the
not effected.*
minimum gap of 15
calender days from
the date of receipt
of STP request and
subsequently after
every quarter from
the start month.
$ Further, in multiples of Re 1/- after the above minimum limit fixed for each STP installment as per the frequency opted
or as per the features of respective schemes e.g. Daily STP under JM Tax Gain Fund with less than Rs. 500 is not possible
since the minimum investment is Rs. 500/- and further in multiples of Rs. 500/- each being governed by Equity Linked
Savings Scheme of Govt of India.
* Or in the event of failure of two consecutive STP installments, the STP request will stand terminated and the investor
will have to make a fresh application for availing of this facility subject to the current terms & conditions applicable for
fresh STP cases.
5. In the event of non-fulfillment of any of the criteria i.e. minimum subscription or minimum number of installments
or failure etc, the AMC/Registrar will revert all the previous installments and reprocess with the same with loads as
applicable on the respective due dates. Alternatively, the AMC may recover the amount of load waived/exemptions
given for all installments directly from investor or by debit to his folio/s maintained with JM Financial Mutual Fund.
In the event of non-fulfillment of minimum subscription criteria of the opted scheme, the AMC shall revert and
refund by redeeming the outstanding units.
6. For SWP, a minimum of 15 calendar days time is required to start. In case of Quarterly SWP, the subsequent quarterly
SWP installment will fall due after completion of 3 months from the start date.
7. In case, it is not possible for the AMC/Registrar to start the STP/SWP from the opted start date due to the insufciency
of time given by the investor, the AMC/Registrar will automatically process the frst STP/SWP on the opted due date
from the next month after the opted starting month e.g. In case investor applies for STP/SWP on 18th Aug 2009
for efecting Ist STP/SWP from Ist Sept , 2009, AMC/Registrar may process the same from Ist of Oct , 2009 due to
insufciency of time given. In such a case, the ending period will be extended automatically by another month.
8. Minimum amount for withdrawal under SWP is fxed as under :
a. Fixed Amount Withdrawal (FAW) : Rs.1,000/- per month or Rs.3,000/- per quarter and Further in multiples of
Re.1/- thereafter.
b. Capital Appreciation Withdrawal(CAW) Entire Capital Appreciation over the previous due date to current due
date subject to a minimum of Rs. 100 under monthly option and Rs. 300/- under quarterly option
9. In case the opted STP/SWP day falls on a non-business day, the next business day shall be deemed to be the
transaction day for that month or quarter as the case may be.
10. Each installment under STP/SWP cannot exceed the original investment amount divided by the number of
installment chosen subject the fulfllment of minimum STP/SWP criteria for respective frequency. In case of
multiple STP/SWP dates, the total number of installments will be taken into account while fxing up the maximum
installment amount.
General :
1. In case, the investor does not mention the name of Plan, Options, Sub-Options, AMC/Registrar will allot the units as
per default Plans/Options/Sub-Options.
2. JM Financial Asset Management Ltd., its Registrars and other service providers shall not be responsible and liable for
any damage/ compensation for any loss, damage, etc. incurred by the investor, in any manner. The investor assumes
the entire risk of using this facility and takes full responsibility.
3. Please refer the Scheme Information Document/s and Key Information Memorandum for other details , terms and
conditions.

Key Information Memorandum


Offer of units for subscription at Net Asset Value (NAV) based prices
Name of Scheme
JM Arbitrage Advantage Fund
An Open-Ended Equity Oriented
Interval Scheme

This Product is suitable for investors who are seeking*

Trust is always the answer

Riskometer

Regular Income over Medium Term


Income through arbitrage by investment predominantly in Equity
Stocks and taking offsetting positions in Equity Futures and
Options.

Investor understand that their principal will be at


moderately low risk

JM Balanced Fund
An Open-Ended Balanced
Scheme

Capital Appreciation and Regular Income over Long Term


Investment predominantly in Equity & Equity related securities
as well as fixed income securities(debt and money market
securities).

JM Equity Fund
An Open-Ended Growth Scheme

Capital Appreciation over Long Term


Investment predominantly in Equity & Equity related securities.

JM Multi Strategy Fund


An Open-Ended Equity Oriented
Scheme

Capital Appreciation over Long Term


Investment predominantly in Equity & Equity related securities
using a combination of strategies.

JM Tax Gain Fund


An Open-Ended Equity Linked
Savings Scheme

Capital Appreciation over Long Term


Investment predominantly in Equity & Equity related securities
and to enable investors tax deduction from total income as
permitted under Income Tax Act, 1961 from time to time.

JM Basic Fund
An Open-Ended Sector Scheme

Capital Appreciation over Long Term


Investment predominantly in Equity & Equity related securities
in sectors classified as Basic Industries in the normal parlance
and in context of Indian Economy.

JM Core 11 Fund
An Open-Ended Equity Oriented
Scheme

Capital Appreciation over Long Term


Investment predominantly in a concentrated portfolio of Equity &
Equity related securities.

JM High Liquidity Fund


An Open-Ended Liquid Scheme

Regular Income over Short Term


Investment in debt and money market securities with maturity of
upto 91 days only

JM Floater Short Term Fund


An Open-Ended Liquid Scheme

Regular Income over Short Term


Investment in floating rate debt / money market instruments,
fixed rate debt / money market instruments swapped for floating
rate returns, and fixed rate debt and money market instruments
of short term maturities with higher liquidity.

Investor understand that their principal will be at


moderately high risk

Investor understand that their principal will be at high risk

Investor understand that their principal will be at low risk

JM Floater Long Term Fund


An Open-Ended Income Scheme

Regular Income over Short to Medium Term


Investment in floating rate debt / money market instruments,
fixed rate debt / money market instruments swapped for floating
rate returns, and fixed rate debt and money market instruments.

JM Money Manager Fund Regular Plan


An Open-Ended Debt Scheme

Regular Income over Short Term


Investment in Debt and Money Market securities.

JM Money Manager Fund Super Plan


An Open-Ended Debt Scheme

Regular Income Short Term


Investment in Debt and Money Market securities.

JM Money Manager Fund - Super Plus Plan


An Open-Ended Debt Scheme

Regular Income Short Term


Investment in Debt and Money Market securities.

JM G-Sec Fund
An Open-Ended Dedicated Gilt
Scheme

Regular Income over Medium to Long Term


Investment in sovereign securities issued by the Central and
State Government.

JM Income Fund
An Open-Ended Income Scheme

Regular Income over Medium to Long Term


Investment in Debt and Money Market securities.

JM MIP Fund
An Open-Ended Monthly Income
Fund with no assured return.

Regular Income and Capital Appreciation/accretion over


Medium to Long Term
Investment predominantly in Debt and Money Market securities
and a portion in Equity and Equity related securities.

JM Short Term Fund


An Open-Ended Income Scheme

Regular Income over Short to Medium Term


Investment in Debt and Money Market securities.

Investor understand that their principal will be at


moderately low risk

Investor understand that their principal will be at moderate


risk

SPONSOR: JM Financial Ltd. TRUSTEE: JM Financial Trustee Company Private Limited CIN: U65991MH1994PTC078880.
Registered Office: 141, Maker Chambers III, Nariman Point, Mumbai - 400 021. REGISTRAR: Karvy Computershare Private Limited.
INVESTMENT MANAGER: JM Financial Asset Management Limited (Formerly known as JM Financial Asset Management Private Ltd.), Corporate Office: 502, 5th Floor, A
Wing, Laxmi Towers, Bandra - Kurla Complex, Bandra (E), Mumbai 400 051. CIN: U65991MH1994PLC078879. E-mail: investor@jmfl.com, Website: www.jmfinancialmf.com
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025. Tel. : (022) 6198 7777 Fax : (022) 2652 8388
This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme/Mutual
Fund, due diligence certificate by the AMC, Key Personnel, investors rights & services, risk factors, penalties & pending litigations, associate transactions etc. investors should,
before investment, refer to the Scheme Information Document (SID) and Statement of Additional Information (SAI) available free of cost at any of the Investor Service Centres
or distributors or from the website www.JMFinancialmf.com. The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual
Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been
approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM.
The date of this Key Information Memorandum is June 29, 2015.

JM SCHEMES RECKONER
Minimum criteria for Investment & Redemption
For Equity schemes: As mentioned in the reckoner table for normal transactions other than through SIP/STP. Additional Purchase : Rs. 1,000/- or any amount thereafter in all schemes except JM Tax Gain Fund. In case
of JM Tax Gain Fund, additional purchase is in multiples of Rs. 500/- each. Repurchase : Minimum redemption from existing Unit Accounts for normal transactions other than through STP/SWP would be a) Rs. 500 and
any amount thereafter OR b) 50 units or any number of units thereafter subject to keeping a minimum balance of 500 units or Rs. 5000/- whichever is less. c) for all the units in the folio for the respective plan
if the available balance is less than Rs. 500/- or less than 50 units on the day of submission of valid redemption request. For Direct plan, please see subsequent pages.
FOR DEBT SCHEMES: Minimum Investment Amount: Rs. 5000/- and any amount thereafter. Additional Purchase Amount: Rs. 1000/- and any amount thereafter. For Direct plan, please see subsequent pages.
Reckoner and Default Options: In case an investor fails to specify his preference of Plans/Sub- Plans/Options/Sub-Options, in the below mentioned schemes, the default Plans/Sub-Plans/Options/Sub-Options
for purchase transactions would be as under.

EQUITY SCHEMES
Currently available facilities
Sr. no.

Schemes

Allotment Date

Plan

Default Plan/Option/Sub-Option

Options

Sub Options

Dividend

Payout / Reinvestment

Default
Plan

Default
Option
Dividend

Default Sub
Option
Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Exit Load
@@@

Lock-in Periods @@@

Redemption
Time#

0.50%

30 Days

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

Growth
Bonus
Annual Bonus
1

JM - Arbitrage
Advantage Fund

July 18, 2006

Principal units
Principal units

Half Yearly Bonus

Principal Units

Quarterly Bonus

Principal Units

Dividend

Payout / Reinvestment

Direct

Growth
(Direct)

Bonus
Annual Bonus
Half Yearly Bonus

Principal units
Principal units
Principal Units

Quarterly Bonus

Principal Units

Dividend

Payout / Reinvestment

Growth
Bonus

Principal units

Half Yearly
Dividend*

Payout / Reinvestment

Annual Dividend*

JM Balanced Fund

April 1, 1995

Principal units

Annual Bonus

Half Yearly Bonus

Principal Units

Quarterly Bonus

Principal Units

Monthly
Dividend*

Payout / Reinvestment

Quarterly
Dividend*

Payout / Reinvestment

Dividend

Payout / Reinvestment

Direct

Growth
Bonus

(Direct)

Principal units

Annual Bonus

Principal units

Half Yearly
Dividend*

Payout / Reinvestment

Annual Dividend*
Half Yearly Bonus

Principal Units

Quarterly Bonus

Principal Units

Monthly Dividend*

Payout / Reinvestment

Quarterly
Dividend*

Payout / Reinvestment

JM Basic Fund

June 2, 1997
(Direct)

JM Core 11 Fund

March 5, 2008
(Direct)

JM Equity Fund

April 1,1995

(Direct)

JM Multi Strategy
Fund

JM Tax Gain Fund

September 23,
2008

(Direct)

March 31,2008
(Direct)

Dividend
Growth
Dividend
Growth
Dividend
Growth
Dividend
Growth
Dividend
Growth
Monthly Dividend$
Quarterly
Dividend$
Half Yearly
Dividend$
Annual Dividend$
Dividend
Growth
Monthly Dividend$
Quarterly
Dividend$
Half Yearly
Dividend$
Annual Dividend$
Dividend
Growth
Dividend
Growth
Dividend
Growth
Dividend
Growth

Payout / Reinvestment
Payout / Reinvestment

Growth

Reinvestment

Direct
Growth

Reinvestment

Growth

Reinvestment

Growth

Reinvestment

Payout / Reinvestment

Dividend

Reinvestment

Payout / Reinvestment

Dividend

Reinvestment

Dividend

Reinvestment

Dividend

Reinvestment

Growth

Reinvestment

Payout / Reinvestment
Payout / Reinvestment

Payout / Reinvestment

Direct

Direct

Payout / Reinvestment

Payout / Reinvestment
Payout / Reinvestment

Direct
Growth

Payout

1.00%

3 Months

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

NIL

&&

T+3 Business
Days

Reinvestment

Growth
Direct

Payout

Payout
Growth

&& JM Tax Gain Fund :- The scheme falls in the ELSS category and is eligible for tax benefits under section 80C of Income Tax Act. There is a lock-in period of 3 years under the Scheme. # AMC would
adhere to the aforesaid service standards for redemption payments on best efforts basis under normal circumstances subject to the overall 10 business days as stipulated by SEBI. *The starting NAV for
Monthly, Quarterly, Half yearly and Annual dividend options will be the NAV of the corresponding dividend option of the respective plans of the Scheme, on the day of first purchase in the respective options
as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated and published for each of the said options. Under these options, the Trustees
of the Mutual Fund reserve the right to declare monthly, quarterly, half yearly and annual dividend in the Scheme, subject to availability of distributable surplus. $ In case of JM Equity Fund: The starting NAV
for Monthly, Quarterly, Half yearly and Annual dividend options under JM Equity Fund stated above will be the NAV of the corresponding earliest dividend option of the respective scheme, on the day of first
purchase in the respective options as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated and published for each of the said options.
Under these options, the Trustees of the Mutual Fund reserve the right to declare dividend in the respective dividend options of the Scheme, subject to availability of distributable surplus. It is clarified that the
minimum investment is applicable at the respective Options/ Sub-options level i.e. Growth, Dividend and will be considered after taking into account permissible DD charges..
Plan(s) / Option(s) available for fresh subscription
Sr.
no.

Type of
Scheme

Schemes

Plans

Options

Sub Options

Daily Dividend

Reinvestment

Weekly Dividend
Quarterly Dividend

Default
Plan^

Reinvestment /
Payout$$
Payout$$ /
Reinvestment

Default Option

Default Sub
Option

Daily Dividend

Reinvestment

Exit Load
@@@

Lock-in Periods
@@@

Redemption
Time#

NIL

N/A

T+1 Business
Day

0.25%

35 Days

T+1 Business
Day

Growth
JM High
Liquidity Fund

Bonus

Principal units

Daily Dividend

Reinvestment

Weekly Dividend
(Direct)

Quarterly Dividend
Bonus
Daily Dividend
Growth
Bonus
Half Yearly Bonus

Reinvestment /
Payout$$
Payout$$ /
Reinvestment

Growth

Liquid

Monthly Dividend$

JM Floater
Short Term
Fund
(Direct)

Daily Dividend
Growth
Bonus
Half Yearly Bonus
Monthly Dividend$

Principal units

Principal units
Reinvestment

Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Direct

Principal units

Principal units
Payout/
Reinvestment
Reinvestment

Principal units
Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Principal units
Payout/
Reinvestment

Principal units
Daily Dividend

Reinvestment

Plan(s) / Option(s) available for fresh subscription


Sr.
no.

Type of
Scheme

Schemes

Plans

Options

Sub Options

Daily Dividend
Weekly Dividend

Reinvestment

Dividend

Reinvestment /
Payout$$

Growth
Bonus
Half Yearly Bonus

Monthly Dividend$

JM Floater
Long Term
Fund

Daily Dividend
Weekly Dividend
Dividend
(Direct)

Debt

JM Income
Fund
(Direct)

Default Sub
Option

Daily Dividend

Reinvestment

Principal units

Reinvestment
Reinvestment /
Payout$$
Principal units

Half Yearly Bonus

Principal Units

Growth
Principal units

Quarterly Dividend

Payout$$ /
Reinvestment

Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Growth

Reinvestment
Principal units

Growth

Growth
Bonus

Lock-in Periods
@@@

Redemption
Time#

NIL

N/A

T+1 Business
Day

NIL

N/A

T+1 Business
Day

NIL

N/A

T+1 Business
Day

0.50%

182 Days

T+2 Business
Day

NIL

NA

T+1 Business
Day

Principal units

Payout /
Reinvestment
Payout$$ /
Reinvestment

Bonus

Exit Load
@@@

Principal units

Payout /
Reinvestment

Bonus

Quarterly Dividend

Default Option

Growth

Monthly Dividend$

Default
Plan^

Principal units

Reinvestment
Principal units

Dividend-Monthly
Dividend

Dividend-Quarterly
Dividend

Payout$$ /
Reinvestment

Monthly Dividend Payout$$

Dividend-Annual
Dividend
Growth

Bonus

JM MIP Fund

Principal units

Dividend-Monthly
Dividend

(Direct)

Dividend-Quarterly
Dividend

Principal units

Direct

Payout$$ /
Reinvestment

Monthly Dividend Payout$$

Dividend-Annual
Dividend
Growth
Bonus

Principal units

Principal units

Daily Dividend
Weekly Dividend
Regular

Reinvestment

Daily Dividend

Fortnightly Dividend

Auto
Reinvestment

Growth
6

Debt

Bonus

JM Money
Manager Fund

Principal units

Daily Dividend
Weekly Dividend
(Direct)

Reinvestment

Fortnightly Dividend

Principal units

Super Plus
Daily Dividend

Auto
Reinvestment

Growth
Bonus

Principal units

Principal units

Plan(s) / Option(s) available for fresh subscription


Sr.
no.

Type of
Scheme

Schemes

Plans

Options

Sub Options

Default
Plan^

Default Option

Default Sub
Option

Daily Dividend

Auto
Reinvestment

Daily Dividend
Weekly Dividend
Super

Reinvestment

Fortnightly Dividend

Exit Load
@@@

Lock-in Periods
@@@

NIL

N/A

NIL

N/A

Redemption
Time#

Growth
Bonus

Principal units

Principal units

Daily Dividend
Weekly Dividend
(Direct)

Reinvestment

Daily Dividend

Fortnightly Dividend
Growth

JM Money
Manager Fund

Bonus

Principal units

Super Plus

Principal units

Daily Dividend
Weekly Dividend
Super Plus

Debt

Auto
Reinvestment

Reinvestment

Daily Dividend

Fortnightly Dividend

Auto
Reinvestment

Growth
Bonus

Principal units

Principal units

Daily Dividend
Weekly Dividend
(Direct)

Reinvestment

Daily Dividend

Fortnightly Dividend

Auto
Reinvestment

T+1 Business
Day

Growth
Principal units

Daily Dividend

Reinvestment

Dividend

Payout$$ /
Reinvestment

Principal units

Growth

JM Short Term
Fund

Bonus

(Direct)

Daily Dividend

Reinvestment

Dividend

Payout$$ /
Reinvestment

Growth

Dividend
Reinvestment

0.25%

30 Days

Growth

Reinvestment

NIL

N/A

T+1
Business Days

Growth
Quarterly Dividend
Monthly Dividend^
Half Yearly Dividend^

Payout$$ /
Reinvestment

Direct

Annual Dividend^
Growth
8

Gilt

Bonus

JM G Sec Fund

Principal units

Quarterly Dividend
Monthly Dividend^
(Direct)

Half Yearly Dividend^

T+1 Business
Day

Payout$$ /
Reinvestment

Annual Dividend^
Growth
Bonus

Principal units

# AMC would adhere to the aforesaid service standards for redemption payments on best efforts basis under normal circumstances subject to the overall 10 business days as stipulated by SEBI. @@@
The exit load shown in the above table are applicable for allotment of units for investment made through fresh purchases/switch-in/shift-in or through respective SIP/STP/SWP Instalments out of the fresh
registration effected during the period when above exit load rates are applicable. The exit load are subject to change at any time. Hence, all Investors are advised to check the current exit load from the nearest
Investor Service Centers before investment. In case, the investor does not mention the name of the Plan/ Option/ Sub-option/or wherever there is an ambiguity in choice of Plan/ Option/ Sub-option opted
for purchase/ switch application(s), the AMC/ Registrar may allot the units as per default Plans/ Options/ Sub-options, if no clarification letter is provided by the investor on the transaction date. However, in
case of fresh purchase application, the AMC/ Registrar at its discretion may allot the units based on the Plan/ Option/ Sub-option appearing on the respective payment instrument. In case, there is complete
ambiguity regarding the Plans/ Options/ Sub-options, the application will be treated as invalid and will be summarily rejected. In case of purchase transactions, where there is a mismatch in the amounts on
the Transaction Slip / Application Form and the payment instrument / credit received, the AMC may at its discretion allot the units for the lesser of the two amounts and refund / utilize the excess, if any, for any
other transaction submitted by the same investor, subject to the fulfillment of other regulatory requirements for the fresh transaction.
Note: Dividend/Bonus shall be declared at the discretion of the Trustee subject to the availability of distributable profits as compiled in accordance with SEBI (Mutual Funds) Regulations, 1996. $$ No dividend
under Dividend Plan shall be distributed in cash even for those unitholders who have opted for payout where such dividend on a single payout is less than Rs.100/-. Consequently, such dividend (less than
Rs.100/-) shall be compulsorily re-invested except under JM Tax Gain Fund as there is no dividend reinvestment option under the scheme.
$The starting NAV for the monthly dividend options under JM Floater Long Term Fund and JM Floater Short Term Fund stated above will be the NAV of the corresponding dividend option of the respective
plans of the schemes, on the day of first purchase in the respective options as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated
and published for each of the said options. Under these options, the Trustees of the Mutual Fund reserve the right to declare monthly dividend in the Schemes, subject to availability of distributable surplus.
^ In case of JM G-Sec Fund: The starting NAV for Monthly, Half yearly and Annual dividend options under JM G-Sec Fund stated above will be the NAV of the corresponding earliest dividend option of the respective
scheme, on the day of first purchase in the respective options as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated and published for
each of the said options. Under these options, the Trustees of the Mutual Fund reserve the right to declare dividend in the respective dividend options of the Scheme, subject to availability of distributable surplus.

Name(s) of the Scheme(s)

JM Equity Fund

JM Multi Strategy Fund

Type of Scheme

An open-ended growth scheme

An open ended equity oriented scheme

Investment Objective

To provide optimum Capital growth and appreciation.

Investment Strategy

JM Equity Fund seeks to invest a substantial portion of its portfolio in equity and equity
related instruments. Under normal circumstances, around 80% of the corpus shall
be deployed in such securities and the balance in debt/money market instruments.
However, whenever the valuations of securities rise in a sharp manner, the AMC will
take advantage of trading opportunities presented and in such a scenario, the Fund
will have a high turnover rate.

Asset Allocation Pattern of the


Scheme

Type of Instruments

To provide capital appreciation by investing in equity and equity related securities using
a combination of strategies
However, there can be no assurance that the investment objectives of the Scheme will
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.
be realized. The Scheme does not guarantee/indicate any returns.

Normal Allocation
(% of net assets)

Equity

Risk Profile

80% to 100%

Debt, Money market and short term debt


inst maturing within one year

High
Low

0% to 20%

The notional value of derivatives shall not exceed the AUM of the scheme.

The Scheme proposes to invest primarily in equities and equity related securities using
a combination of strategies. Depending on the prevailing market conditions, the Scheme
will either adopt the growth or value style of investing. During benign market conditions,
the Scheme will act like an aggressive growth fund with a concentrated portfolio of say
25 30 stocks with a targeted portfolio beta of greater than 1 whereas in a bearish
market the Scheme will have a low volatility conservative portfolio of larger number
of stocks in the range of 40 to 60 stocks with a targeted portfolio beta of less than 1.
Type of Instruments

Normal Allocation
(% of net assets)

Risk Profile

65% to 100%

Medium to
High

Equity & equity related instruments


(including equity derivatives)**

Money market instruments / debt securities


Low to
(including securitized debt* to the extent of
0% to 35%
Medium
20%)
**The notional value of derivatives shall not exceed the AUM of the scheme.
* excluding foreign securitized debt.
The AMC intends to invest in derivative instruments in accordance with the SEBI
Regulations, as and when opportunities arise in the derivatives markets. The investment
in derivatives will be broadly in line with the investment objective of the Scheme.

Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth,


Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth, Monthly
Dividend (Payout & Reinvestment sub-option), Quarterly Dividend (Payout &
Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth,
Reinvestment sub-option), Half Yearly Dividend (Payout & Reinvestment sub-option)
and Annual Dividend (Payout & Reinvestment sub-option)
Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth, Monthly
Dividend (Payout & Reinvestment sub-option), Quarterly Dividend (Payout &
Reinvestment sub-option), Half Yearly Dividend (Payout & Reinvestment sub-option)
and Annual Dividend (Payout & Reinvestment sub-option)

Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 2


No. of Units

Refer JM SCHEMES RECKONER on page 2

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

BSE Sensex

BSE 500 Index

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Sanjay Chhabaria & Chaitanya Choksi

Sanjay Chhabaria

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Returns
JM Equity Fund
BSE Sensex

Returns
1 year
3 years
5 years
JM Multi Strategy Fund
48.71
21.85
8.74
BSE 500 Index
33.19
17.78
9.81
* Date of inception = Date of allotment i.e. 23.09.2008

1 year
44.17
24.89

3 years
19.88
17.10

5 years
9.96
9.78

Since inception*
9.02
11.33

* Date of inception = Date of allotment i.e. 01.04.1995

Since inception*
12.75
12.28

Returns
1 year
Since inception*
JM Multi Strategy Fund (Direct)
49.77
23.79
BSE 500 Index
33.19
17.80
* Date of inception = 01.01.2013
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained
with reinvestment of dividends (if any). Past performance may or may not be sustained in future.
in future.
Absolute Returns for each financial year for the last 5 years
Absolute Returns for each financial year for the last 5 years
JM Mul Strategy Fund Bench Mark BSE 500
Returns
JM Equity Fund (Direct)
BSE Sensex

1 year
45.04
24.89

JM Equity Fund

50.00

Since inception*
22.50
17.20

60.00

Bench Mark BSE Sensex

50.00

% Returns

% Returns

40.00
30.00
20.00
10.00

30.00
20.00
10.00
0.00

0.00
10.00

40.00

2014 2015

2013 2014

2012 2013

2011 2012

2014 2015

2010 2011

2013 2014

2012 2013

2011 2012

2010 2011

10.00
20.00

20.00

Entry Load

NIL

NIL

Exit Load*

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed /
switched-out within 3 months of transfer/ allotment of units in normal transactions/ allotment
of units of respective installments in SIP/ STP/ SWP transactions.

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.93%, Direct: 2.32%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.83%, Direct: 2.16%

No. of Folios as on 31.03.2015

11,013

52,880

Quarterly Avg. AUM (In Crores) 33.22


Jan 15 to Mar 15

151.72

Name(s) of the Scheme(s)

JM Core 11 Fund

JM Basic Fund

Type of Scheme

An open ended equity oriented scheme

An open-ended sector scheme

Investment Objective

To provide long-term growth by investing predominantly in a concentrated portfolio of


equity / equity related instruments of companies.
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.

To provide capital appreciation to its Unitholders through judicious deployment of the


corpus of the Scheme in sectors categorized under basic industry in the normal
parlance and in context of the Indian economy, including but not limited to, energy,
petrochemicals, oil & gas, power generation & distribution, electrical equipment
suppliers, metals and building material. The fund would continue to remain open-ended
with a sector focus.
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

The Scheme will have a concentrated portfolio with not more than 11 stocks in the
portfolio with each stock being invested to the extent of 9.09% of the NAV of the Scheme.
The portfolio will be rebalanced on a fortnightly basis so as to prevent any one stock
going above the targeted concentration range. To prevent stagnancy of the portfolio, the
portfolio will be reviewed on a half yearly basis whereby some stocks would be replaced.

Under normal circumstances, the corpus would be invested in equities and equity type
securities categorized under basic industry in the normal parlance and in context of
the Indian economy, including but not limited to, energy, petrochemicals, oil & gas,
power generation & distribution and electrical equipment suppliers, metals and building
materials. The fund would continue to remin open-ended with a sector focus. Exposure
of investment in individual scrip if part of the Sectoral Index shall not be restricted to
10% of NAV as Clause 10 of Seventh Schedule of SEBI Regulations has clarified that
the limit of 10 percent shall not be applicable for investments in index fund or sector
or industry specific scheme.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

65% to 100%

Medium to High

0% to 35%

Low to Medium

Equity and equity related securities#


Money Market Instruments / Debt

The Scheme will not invest in securitized debt and Foreign Securities.
# Exposure to derivatives would be capped at 50 % of equity portfolio of the Scheme.
The cumulative gross exposure through equity, debt and derivative positions will not
exceed 100% of the net assets of the Scheme. The Trustee may, from time to time,
pending deployment of funds of the Scheme in securities in terms of the investment
objective of the Scheme, invest the funds of the Scheme in short-term deposits of
scheduled commercial banks in accordance with SEBI Circular No. SEBI/IMD/CIR
No. 1/91171/07 dated April 16, 2007, as amended.

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

80% to 100%

High

Debt securities & Money market


instruments

0% to 20%

Low

Securitised Debt

0% to 20%

Low

Equity & equity related instruments


(including equity derivatives)

Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal. Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth,


Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth,

Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth,


Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth,

Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 2


No. of Units

Refer JM SCHEMES RECKONER on page 2

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

BSE Sensex

BSE 200

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Asit Bhandarkar & Chaitanya Choksi

Asit Bhandarkar

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Returns

1 year

3 years

5 years

Since inception*

JM Core 11 Fund

41.67

19.53

5.67

(7.25)

BSE Sensex Index

24.89

17.10

9.78

7.70

Returns
1 year
3 years
5 years
JM Basic Fund
49.24
20.47
3.36
BSE 200
31.93
17.89
9.96
* Date of inception = Date of allotment i.e. 02.06.1997

* Date of inception = Date of allotment i.e. 05.03.2008


Returns
1 year
Since inception*
JM Core 11 Fund (Direct)
42.76
21.05
BSE Sensex Index
24.89
17.20
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with
reinvestment of dividends (if any). Past performance may or may not be sustained in
future. Absolute Returns for each financial year for the last 5 years
JM Core 11 Fund

Since Inception*
17.33
13.56

Returns
1 year
Since Inception*
JM Basic Fund (Direct)
50.27
19.88
BSE 200
31.93
17.87
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with
reinvestment of dividends (if any). Past performance may or may not be sustained in
future. Absolute Returns for each financial year for the last 5 years
JM Basic Fund

Bench Mark BSE Sensex

Bench Mark BSE 200 Index

60.00

50.00

50.00
40.00

% Returns

40.00

% Returns

30.00
20.00

30.00
20.00
10.00

10.00

0.00
0.00
2014 2015

Entry Load

NIL

2013 2014

2012 2013

2011 2012

10.00

2010 2011

2014 2015

10.00

20.00

20.00

30.00

NIL

2013 2014

2012 2013

2011 2012

2010 2011

Exit Load*

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015 :
Normal: 2.91%, Direct: 2.08%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.81%, Direct: 2.15%

No. of Folios as on 31.03.2015

4,191

81,027

Quarterly Avg. AUM (In Crores) Jan 15 to Mar 15

41.30

172.79

Name(s) of the Scheme(s)

JM Tax Gain Fund

JM Balanced Fund

Type of Scheme
Investment Objective

An Open-Ended Balanced Scheme


To provide steady current income as well as long term growth of capital.

Investment Strategy

An Open-Ended Equity Linked Savings Scheme


To generate long-term capital growth from a diversified and actively managed portfolio
of equity and equity related securities and to enable investors a deduction from total
income, as permitted under the Income Tax Act, 1961 from time to time. However, there
can be no assurance that the investment objectives of the Scheme will be realized.
The Scheme does not guarantee/indicate any returns.
The Mutual Fund adopts a scientific approach to investments. Securities are selected
for various funds by the fund managers based on a continuous study of trends in
industries and companies, including management capabilities, global competitiveness,
earning power, growth / payout features and other relevant investment criteria,
which would, inter-alia include evaluation of the outlook of the economy, exposure
to various industries and geographical regions, evaluation of the intrinsic worth of
specific opportunities such as primary market transactions, private placements etc.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Risk Profile of the Scheme


Plans and Options

Normal Allocation (%
of net assets)

Risk Profile

Equity and Equity related securities

80% to 100%

Medium to High

Money Market Instruments / Debt

0% to 20%

Low to Medium

In accordance with the ELSS notification of November, 2005, the Funds collected under
the Scheme shall be invested in equities, cumulative convertible preference shares
and fully convertible debentures and bonds of companies. Investment may also be
made in partly convertible issues of debentures and bonds including those issued
on rights basis subject to the condition that, as far as possible, the non-convertible
portion of the debentures so acquired or subscribed, shall be disinvested within a
period of twelve months. The scheme falls in the ELSS category and is eligible for
Tax Benefits under section 80C of Income Tax Act, 1961.
Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Normal Plan: Dividend (Payout) & Growth,


Direct Plan: Dividend (Payout) & Growth,

Applicable NAV

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 3


No. of Units
Dispatch of Repurchase /
Details are set out in subsequent pages.
Redemption request
Benchmark Index
BSE 500 Index
Dividend Policy
Details are set out in subsequent pages.
Name of the Fund Manager
Sanjay Chhabaria & Chaitanya Choksi
Performance of the Scheme
Compounded annualized returns (%) of Growth option as on March 31, 2015.
Compounded annualized
Returns
1 Year
3 Years
5 Years
Since Inception*
returns
JM Tax Gain Fund
47.89
22.97
10.57
2.25
BSE 500 Index

33.19

17.78

9.81

8.71

* Date of inception = Date of allotment i.e. 31.03.2008


Returns
JM Tax Gain Fund (Direct)
BSE 500 Index

1 Year
48.73
33.19

Since Inception*
25.37
17.80

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.
In order to stabilize equity volatility, JM Balanced Fund seeks a judicious mix of debt
securities in its portfolio. The scheme, under normal circumstances, will seek to invest
upto 65% of its assets in equity markets and the balance in debt and money market
securities.The fund, while at all times emphasizing on a long term investment approach,
will take advantage of the trading opportunities that present themselves from time to
time because of inefficiencies in securities market with a view to booking short term
profits Portfolio turnover will therefore depend upon the circumstances prevalent at
any time. However, this allocation is not absolute and the fund manager may take a
defensive view on the equity markets and reallocate the assets for a short term period.
Due to market fluctuations, if the equity component of the Portfolio goes above 75%, the
fund manager shall balance the Portfolio in order to bring down the equity component.
Type of Instruments
Equity & Equity related
instruments

Normal Allocation (%
of net assets)

Risk Profile

65% to 75%

Medium to High

Debt securities (including fixed


income derivatives and securitized
25% to 35%
Low to Medium
debt*) and money market
instruments
The notional value of derivatives shall not exceed the AUM of the scheme.
* Allocation in securitized debt will not exceed 10% of the net assets

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.
Normal Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus (Principal
units sub-option), Annual Bonus (Principal units sub-option), Monthly Dividend (Payout
& Reinvestment sub-option), Quarterly Dividend (Payout & Reinvestment sub-option),
Half Yearly Dividend (Payout & Reinvestment sub-option) and Annual Dividend (Payout
& Reinvestment sub-option), Half Yearly Bonus (Principal units sub-option), Quarterly
Bonus (Principal units sub-option).
Direct Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus (Principal
units sub-option), Annual Bonus (Principal units sub-option), Monthly Dividend (Payout
& Reinvestment sub-option), Quarterly Dividend (Payout & Reinvestment sub-option),
Half Yearly Dividend (Payout & Reinvestment sub-option) and Annual Dividend (Payout
& Reinvestment sub-option), Half Yearly Bonus (Principal units sub-option), Quarterly
Bonus (Principal units sub-option).
Details are set out in subsequent pages.
Refer JM SCHEMES RECKONER on page 2
Details are set out in subsequent pages.
CRISIL Balanced Fund Index (CBFI)
Details are set out in subsequent pages.
Sanjay Chhabaria
Compounded annualized returns (%) of Growth option as on March 31, 2015.
Returns

1 Year

3 Years

5 Years

Since Inception*

JM Balanced Fund

32.42

20.18

12.28

12.94

CBFI
22.53
14.55
9.74
* Date of inception = Date of allotment i.e. 01.04.1995

NA

Returns

1 Year

Since Inception*

JM Balanced Fund (Direct)


CBFI

33.63
22.53

24.81
14.89

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

Absolute Returns for each financial year for the last 5 years

Absolute Returns for each financial year for the last 5 years
JM Tax Gain Fund

Bench Mark BSE 500

JM Balanced Fund

60.00

30.00

40.00

25.00

30.00

20.00

20.00
10.00
0.00
2014 2015

Entry Load

Bench Mark Crisil Balanced Fund Index

35.00

50.00

% Returns

% Returns

Performance of the Scheme


Compounded annualized
returns

2013 2014

2012 2013

2011 2012

15.00
10.00
5.00
0.00

2010 2011

10.00

5.00

20.00

10.00

2014 2015

NIL

2013 2014

2012 2013

2011 2012

2010 2011

NIL

Exit Load*

Exit Load is NIL. The scheme falls in the ELSS category and is eligible for Tax Benefits
under section 80C.

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

Recurring expenses
[% of Net Assets]
No. of Folios as on 31.03.2015

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.90%, Direct: 2.11%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.24%, Direct: 1.19%

15,127

2,462

Quarterly Avg. AUM (In Crores) 34.04


Jan 15 to Mar 15

1,600.97

Name(s) of the Scheme(s)

JM Arbitrage Advantage Fund

JM Short Term Fund

Type of Scheme

An open-ended equity oriented scheme

An Open-Ended Income scheme

Investment Objective

To generate income through arbitrage opportunities emerging out of mis-pricing


between the cash market and the derivatives market and through deployment of
surplus cash in fixed income instruments.
However, there can be no assurance that the investment objective of the scheme will
be realized. The scheme does not guarantee/indicate any returns.

To generate regular returns and high level of liquidity with low risk strategy and capital
appreciation / accretion through investment in debt instruments and related securities
besides preservation of capital.
However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

JM Financial Mutual Fund adopts a scientific approach to investments. Securities


are selected for various funds by the fund managers based on a continuous study
of trends in industries and companies, including management capabilities, global
competitiveness, earning power, growth features and other relevant investment criteria.
The Fund Manager would identify opportunities for mis-pricing and execute the deals
simultaneously in both the markets. In terms of the SEBI guidelines the scheme shall
not short sell in the cash market at all times. Due to mispricing between the cash
and the underlying derivative security, the fund manager shall deploy investments
in securities accordingly.

The investment focus of the scheme is to achieve the investment of the scheme
through investments in a combination of debt and money market instruments having
varied yields and maturity profile. The scheme is being positioned as a product having
the essence of both debt and money market schemes. As such the product is being
positioned as intervening product between the long-term debt scheme and short-term
cash/liquid scheme. Further, the composition of maturity profile of the instruments may
vary substantially from time to time depending upon the changes due to purchase
and repurchase of units.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Normal Allocation (%
of net assets)
65% to 80%

Risk Profile

Equity & Equity related instruments


Medium to High
Derivatives including stock futures
65% to 80%
Medium to High
and stock options #
Money Market Instruments / Debt* /
20% to 35%
Medium to High
Fixed Income Derivatives
# The notional value exposure in derivatives securities would be reckoned for the
purposes of the specified limits.
*Including securitized debt upto a maximum of 30% of net assets of this scheme.
Debt instruments will include Government securities, corporate debentures, bonds,
promissory notes, money market instruments, pass-through obligations, asset backed
securities / securitized debt and other possible similar instruments.
In line with the provisions of the SEBI circular no. DNPD/Cir-29/2005 dated September
14, 2005 duly amended by circular no. DNPD/Cir-30/2006 dated January 20, 2006 by
enumerating the guidelines for participation in Derivatives, the scheme shall execute
transactions in the derivatives markets.
The maximum derivative position will not exceed 80% of the portfolio (i.e. net assets
including cash). The above limits shall be in line with the investment objective of
the scheme.

Type of Instruments

Proportion % of corpus
Min

Likely

Max upto

Risk
Profile

20

80

100

Low

Debt, Money Market Instruments


with residual average maturity of
equal to or less than 367 days

Debt, Money Market Instruments


with residual average maturity of
20
100
equal to or more than 367 days*
* Including securitized debt 0% - 70% of net assets of this scheme

Low to
Medium

Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus


(Principal units sub-option), Annual Bonus (Principal units sub-option), Half Yearly
Bonus (Principal units sub-option) & Quarterly Bonus (Principal units sub-option).
Direct Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus
(Principal units sub-option), Annual Bonus (Principal units sub-option), Half Yearly
Bonus (Principal units sub-option) & Quarterly Bonus (Principal units sub-option).

Normal Plan: Daily Dividend (Reinvestment sub-option), Dividend (Payout &


Reinvestment sub-option) & Growth
Direct Plan: Daily Dividend (Reinvestment sub-option), Dividend (Payout &
Reinvestment sub-option) & Growth

Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 2


No. of Units

Refer JM SCHEMES RECKONER on page 4

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL Liquid Fund Index (CLFI)

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Chaitanya Choksi, Sanjay Chhabaria, Asit Bhandarkar

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Vikas Agrawal

JM Arbitrage Advantage Fund

8.20

9.00

8.36

Since
Inception*
7.85

CLFI

8.98

8.89

8.26

7.54

Returns

1 Year

3 Years

5 Years

* Date of inception = Date of allotment i.e. 18.07.2006


Returns

1 Year

Since Inception*

JM Arbitrage Advantage Fund (Direct)

8.72

9.24

CLFI

8.98

9.17

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any). Past performance may or may not be sustained
in future. Absolute Returns for each financial year for the last 5 years
JM Arbitrage Advantage Fund

Bench mark Crisil Liquid Fund Index

Compounded annualized returns (%) of Growth option as on March 31, 2015.


Returns
JM Short Term Fund
CLFI

1 Year
10.18
8.98

3 Years
9.11
8.89

5 Years
8.89
8.26

Since Inception*
5.88
6.74

* Date of inception = Date of allotment i.e. 24.06.2002


Returns
JM Short Term Fund
CLFI

1 Year
10.45
8.98

Since Inception*
8.96
9.11

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.
Absolute Returns for each financial year for the last 5 years
JM Short Term Fund

12.00

Bench Mark Crisil Liquid Fund Index

12.00

10.00

% Returns

% Returns

10.00

8.00
6.00
4.00
2.00

8.00
6.00
4.00
2.00

0.00

0.00

2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

Entry Load

NIL

Exit Load*

0.50% of NAV on all investments, if redeemed/switched-out within 30 days from the


date of transfer/allotment of units in normal transactions/allotment of units of respective
installments in SIP/STP/SWP transactions.

0.25% of NAV on all investments, if redeemed/switched-out within 30 days from the


date of transfer/allotment of units in normal transactions/allotment of units of respective
installments in SIP/STP/SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 1.03%, Direct: 0.56%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.97%, Direct: 0.70%

No. of Folios as on 31.03.2015

2,253

655

Quarterly Avg. AUM


(In Crores) - Jan 15 to Mar 15

3,133.85

54.15

NIL

Name(s) of the Scheme(s)

JM Floater Long Term Fund

JM Floater Short Term Fund

Type of Scheme

An open-ended income scheme

An open-ended liquid scheme

Investment Objective

To provide regular income and capital appreciation through investment in floating rate
debt instruments, fixed rate debt instruments swapped for floating rate returns and
also fixed rate instruments and money market instruments.
However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

To provide regular income and capital appreciation through investment in floating rate
debt instruments, fixed rate debt instruments swapped for floating rate returns and
also fixed rate instruments and money market instruments.

The Fund will seek to invest in quality debt and money market instruments. The fund
aims to identify securities, which offer superior levels of yields at lower levels of risk.
With the aim of controlling risks, rigorous in-depth credit evaluations of the securities
proposed to be invested in will be carried out.

The Fund will seek to invest in quality debt and money market instruments. The fund
aims to identify securities, which offer superior levels of yields at lower levels of risk.
With the aim of controlling risks, rigorous in-depth credit evaluations of the securities
proposed to be invested in will be carried out.

Investment Strategy

Asset Allocation Pattern of the


Scheme

Type of Instruments

Normal Allocation (%
of net assets)

Debt
Money market and short term debt
inst. maturing within one year

Risk Profile

0% to 65%

Low-Medium

35% to 100%

Low-Medium

However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

Type of Instruments
Money market and short term debt
instrument maturing within less than
91 days

Normal Allocation
(% of net assets)

Risk Profile

0% to 100%

Low to
Medium

Pls see note $


Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend


(Reinvestment sub-option), Dividend (Payout & Reinvestment sub-option), Growth,
Bonus (Principal Units sub-option), Monthly Dividend (Payout & Reinvestment suboption) and Half Yearly Bonus (Principal Units sub-option)
Direct Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend
(Reinvestment sub-option), Dividend (Payout & Reinvestment sub-option), Growth,
Bonus (Principal Units sub-option), Monthly Dividend (Payout & Reinvestment suboption) and Half Yearly Bonus (Principal Units sub-option)

Normal Plan: Daily Dividend (Reinvestment sub-option), Growth, Bonus (Principal


Units sub-option), Monthly Dividend (Payout & Reinvestment sub-option) and Half
Yearly Bonus (Principal Units sub-option)

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Applicable NAV

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 3


No. of Units

Direct Plan: Daily Dividend (Reinvestment sub-option), Growth, Bonus (Principal Units
sub-option), Monthly Dividend (Payout & Reinvestment sub-option) and Half Yearly
Bonus (Principal Units sub-option)

Refer JM SCHEMES RECKONER on page 3

Name(s) of the Scheme(s)

JM Floater Long Term Fund

JM Floater Short Term Fund

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL Liquid Fund Index (CLFI)

Dividend Frequency^

Daily

Dividend Policy

Details are set out in subsequent pages.

Name of the Fund Manager

Shalini Tibrewala

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Daily
Details are set out in subsequent pages.
Shalini Tibrewala

Returns

1 Year

3 Years

5 Years

Since Inception*

JM Floater Long Term Fund

8.85

8.32

7.89

6.59

CLFI

8.98

8.89

8.26

6.77

1 Year

Since Inception*

* Date of inception = Date of allotment i.e. 25.06.2003


Returns
JM Floater Long Term Fund (Direct)

9.31

9.11

CLFI

8.98

9.17

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.
Absolute Returns for each financial year for the last 5 years
JM Floater Long Term Fund

Compounded annualized returns (%) of Growth option as on March 31, 2015.


Returns

1 year

3 years

5 years

JM Floater Short Term Fund


8.36
8.42
CLFI
8.98
8.89
* Date of inception = Date of allotment i.e. 25.06.2003

7.84
8.26

Returns

1 year

JM Floater Short Term Fund (Direct)


CLFI

8.47
8.98

Since
Inception*
6.77
6.77
Since
Inception*
8.54
9.17

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any). Past performance may or may not be
sustained in future.
Absolute Returns for each financial year for the last 5 years
JM Floater Short Term Fund

Bench Mark Crisil Liquid Fund Index

Bench Mark Crisil Liquid Fund Index

10.00

10.00

8.00

% Returns

% Returns

8.00
6.00
4.00

4.00
2.00

2.00

0.00

0.00
2014 2015

Entry Load

6.00

2013 2014

2012 2013

2011 2012

2010 2011

NIL

2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

NIL

Exit Load*

NIL

0.25% of NAV on all investments, if redeemed/switched-out within 35 days from the


date of transfer/allotment of units in normal transactions/allotment of units of respective
installments in SIP/STP/SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.67%, Direct: 0.44%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.55%, Direct: 0.38%

No. of Folios as on 31.03.2015

171

177

Quarterly Avg. AUM


(In Crores) - Jan 15 to Mar 15

54.64

43.68

Name(s) of the Scheme(s)

JM High Liquidity Fund

JM Income Fund

Type of Scheme

An open-ended liquid scheme

An open-ended income scheme

Investment Objective

To provide income by way of dividend (dividend plans) and capital gains (growth plan) To generate stable long term returns with low risk strategy and capital appreciation
through investing in debt and money market instruments.
/ accretion through investment in debt instruments and related securities besides
However, there can be no assurance that the investment objectives of the Scheme preservation of capital.
will be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

Securities will be selected by the fund manager based on a continuous study of the JM Income Fund will seek to invest in high quality debt and money market instruments.
trends in the economy, liquidity and interest rates, management capabilities, credit The fund aims to identify securities, which offer superior levels of yield at lower levels
rating and other relevant investment criteria.
of risks. With the aim of controlling risks, rigorous in depth credit evaluation of the
A constant watch will be kept on various liquidity indicators in the economy, inflation rate securities proposed to be invested in will be carried out by the investment team of
movement, cash flows etc. so as to ascertain the expected changes in interest rates in the AMC. Rated Debt instruments in which the Scheme invests will be of investment
the short/medium term and accordingly funds would be invested to optimize returns. grade as rated by a credit rating agency. The AMC will be guided by the ratings of
Rating Agencies such as CRISIL, CARE, ICRA and Duff and Phelps Credit Rating
Being a cash management product, the primary aim of the fund will be to invest in India Limited or any other rating agencies that may be registered with SEBI from time
securities which have superior liquidity. The Scheme will have an appropriate mix of to time. In case a debt instrument is not rated, necessary clearance of the Committee/
money market securities and fixed income securities depending on the prevailing Board as per requirements of Regulations/Guidelines /Circulars will be obtained for
market outlook to generate reasonable return with low risk and high level of liquidity. such an investment.
The Scheme may also use various derivatives and hedging products from time to time,
as would be available and permitted by SEBI, in an attempt to protect the value of the
portfolio and enhance Unitholders interest.
The Scheme may invest in other debt Schemes managed by the AMC or in the debt
Schemes of any other Mutual Funds, provided it is in conformity to the investment
objectives of the Scheme and in terms of the prevailing Regulations. As per the
Regulations, no investment management fees will be charged for such investments
and the aggregate inter Scheme investment made by all Schemes of JM Financial
Mutual Fund or in the Schemes under the management of other asset management
companies shall not exceed 5% of the net asset value of JM Financial Mutual Fund.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Normal Allocation
(% of net assets)

Risk Profile

0% to 30%

Low
Low

Debt
Money Market & Short Term debt
instruments maturing within one year

70% to 100%

Type of Instruments

Normal Allocation
(% of net assets)

Risk Profile

Debt

0% to 100%

Low to Medium

Money Market and Debt Instruments


maturing within one year

0% to 100%

Low

The gross notional exposure in derivatives shall not exceed the AuM of the Scheme.
Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend (Payout/


Reinvestment sub-option), Quarterly Dividend (Payout/Reinvestment sub-option),
Growth & Bonus (Principal units sub-option).

Normal Plan: Quarterly Dividend (Payout/Reinvestment sub-option), Growth & Bonus


(Principal units sub-option)
Direct Plan: Quarterly Dividend (Payout/Reinvestment option), Growth & Bonus
(Principal units sub-option)

Direct Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend (Payout/


Reinvestment sub-option), Quarterly Dividend (Payout/Reinvestment sub-option),
Growth & Bonus (Principal units sub-option).
Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 3


No. of Units

Refer JM SCHEMES RECKONER on page 3

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL Composite Bond Fund Index (CCBFI)

Dividend Frequency^

Daily / Weekly / Quarterly

Quarterly

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Shalini Tibrewala

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Vikas Agrawal

Returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

1 year

3 years

5 years

Since Inception*

Returns

1 year

3 years

5 years

Since Incep.*

JM High Liquidity Fund

9.03

9.25

8.73

8.07

JM Income Fund

13.53

9.01

7.94

7.35

CLFI

8.98

8.89

8.26

NA

CCBFI

14.54

9.32

8.13

NA

Returns

1 year

Since Incep.*

JM Income Fund (Direct)

14.63

9.84

CCBFI

14.54

9.18

* Date of inception = Date of allotment i.e. 31.12.1997


Returns

* Date of inception = Date of allotment i.e. 01.04.1995

1 year

Since Inception*

JM High Liquidity Fund (Direct)

9.11

9.29

CLFI

8.98

9.11

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with
reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

Absolute Returns for each financial year for the last 5 years

Absolute Returns for each financial year for the last 5 years
JM Income Fund

Bench Mark Crisil Liquid Fund Index

10.00

16.00

8.00

14.00
12.00

% Returns

% Returns

JM High Liquidity Fund

6.00
4.00

10.00
8.00
6.00
4.00
2.00

2.00

0.00

0.00
2014 2015

Entry Load

Bench Mark Crisil Composite Bond Fund Index

2013 2014

2012 2013

2011 2012

NIL

2010 2011

2014 2015

2013 2014

2012 2013

2011 2012

Exit Load*

NIL

NIL

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.28%, Direct: 0.21%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.62%, Direct: 1.95%

No. of Folios as on 31.03.2015

1,925

Quarterly Avg. AUM (In Crores) 5,166.15


Jan 15 to Mar 15
Name(s) of the Scheme(s)
Type of Scheme
Investment Objective

2010 2011

NIL

2,663
24.14

JM Money Manager Fund

JM MIP Fund

An open-ended Debt scheme

An open-ended monthly income fund with no assured return. Monthly Income is not
assured and is subject to the availability of the distributable surplus.

To generate stable long term returns with low risk strategy and capital appreciation/ To generate regular income, primarily through investments in fixed income securities
accretion through investments in debt instruments and related securities besides so as to make monthly, quarterly and annual dividend distribution, declare bonus in
preservation of capital
the growth option. The Fund would also aim to achieve capital appreciation through
However, there can be no assurance that the investment objectives of the Scheme will investing a portion of its assets in equity and equity related securities.
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.
be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

Asset Allocation Pattern of the


Scheme

JM Financial Mutual Fund adopts a scientific approach to investments. Securities


are selected for various funds by the fund managers based on a continuous study
of trends in industries and companies, including management capabilities, global
competitiveness, earning power, growth/payout features and other relevant investment
criteria, which would, inter alia, include evaluation of the outlook of the economy,
exposure to various industries and geographical regions, evaluation of the intrinsic worth
of specific opportunities such as primary market transactions, private placements, etc.

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

0% to 100%

Low

Debt, Money Market / Short term debt


instruments

To achieve the investment objective, assets under the Scheme will be invested in wide
range of fixed income and money market instruments. The Scheme may also invest a
small part of its assets in equity/equity related instruments. Further the Scheme may
also invest in financial derivatives such as options and futures & IRS that are permitted
or may become permissible under SEBI/RBI Regulations. The proportion of assets to be
so invested would be decided by the AMC at the appropriate time, and would be done in
accordance with the relevant guidelines to be issued by SEBI/RBI and other authorities.

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

0% to 15%

Medium to High

85% to 100%

Low to Medium

Equity and Equity related securities


Debt securities, Money Market
Instruments, Securitized Debt*, Cash
and Call

*Exposure in securitised debt 0% 70% of net asset of this scheme with low risk
profile.
Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal. Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal: Regular Plan, Super Plan & Super Plus Plan each having Daily Dividend, Weekly
Dividend, Fortnightly Dividend (Reinvestment), Growth & Bonus (Principal Units suboption).
Direct: Regular Plan, Super Plan & Super Plus Plan each having Direct - Daily Dividend,
Direct - Weekly Dividend, Direct - Fortnightly Dividend (Reinvestment), Direct - Growth
& Direct - Bonus (Principal Units sub-option).

Normal Plan: Dividend with Monthly, Quarterly and Annual (Payout/Reinvestment


sub-option), Growth & Bonus (Principal units sub-option)

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Applicable NAV

Direct Plan: Dividend with Monthly, Quarterly and Annual (Payout/Reinvestment


sub-option), Growth & Bonus (Principal units sub-option)

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 4


No. of Units

Refer JM SCHEMES RECKONER on page 3

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL MIP Blended Index (CMIP In)

Dividend Frequency^

Daily / Weekly / Fortnightly (with compulsory reinvestment).

Dividend Policy

Monthly / Quarterly / Annual

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Vikas Agrawal

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Shalini Tibrewala

Returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

1 Year

3 Years

5 Years

Since Inception*

Returns

1 Year

3 Years

5 Years

Regular Plan

8.72

9.40

9.08

8.12

JM MIP Fund

13.36

9.96

7.82

6.85

Super Plan

8.79

9.36

9.07

8.46

CMIP In

16.39

10.59

8.61

8.28

Super Plus Plan

8.88

9.30

8.80

8.35

CLFI

8.98

8.89

8.26

7.59

* Date of inception = Date of allotment i.e. 18.09.2003

* Date of inception = Date of allotment i.e. 27.09.2006


Returns

1 Year

CLFI

Since
Inception*

CLFI

Regular Plan (Direct)

9.01

8.98

9.41

9.11

Super Plan (Direct)

8.99

8.98

9.30

9.12

Super Plus Plan (Direct)


8.99
8.98
9.21
9.11
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period less than 1 year
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

Returns

1 Year

Since Inception*

JM MIP Fund (Direct)

15.09

12.81

CMIP In

16.39

10.56

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.
Absolute Returns for each financial year for the last 5 years
JM MIP Fund

JM Money Manager FundRegular Plan


JM Money Manager FundSuper Plus Plan

JM Money Manager FundSuper Plan


Bench Mark Crisil Liquid Fund Index

% Returns

10.00

% Returns

Absolute Returns for each financial year for the last 5 years

12.00

Since Inception*

8.00
6.00
4.00

Bench Mark Crisil MIP Blended Index

18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

2.00
0.00
2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

Entry Load

NIL

NIL

Exit Load*

JM Money Manager - Regular Plan: NIL


JM Money Manager - Super Plan: NIL
JM Money Manager - Super Plus Plan: NIL

0.50% of NAV on all investments in case the investments are redeemed/switchedout within 182 days of transfer /allotment of units in normal transactions/respective
installments under SIP/STP transaction mode.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Regular Plan - Normal: 0.82%, Direct: 0.47%
Super Plan - Normal: 0.53%, Diirect: 0.36%
Super Plus Plan - Normal: 0.53%, Direct: 0.43%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.56%, Direct: 1.12%

No. of Folios as on 31.03.2015

Regular plan: 871, Super Plan: 1,002, Super Plus Plan: 1,183

817

Quarterly Avg. AUM (In Crores) Regular plan: 123.87, Super Plan: 252.64, Super Plus Plan: 1,127.35
Jan 15 to Mar 15
Name(s) of the Scheme(s)

JM G-Sec Fund

Type of Scheme

An open-ended dedicated gilts scheme

4.63
Note: The returns of the schemes are calculated on the basis of the NAVs declared
as on the last business day.

$ Asset allocation of JM Floater Fund will be 35% to 100% in Floating rate debt
To provide ultimate level of safety to its unitholders through investments in sovereign securities/ fixed rate dabt securities swapped for floating rate returns and 0% to 65%
securities issued by the Central and State Government.
in fixed rate debt securities (including securitized debt)/ money market securities.
However, there can be no assurance that the investment objectives of the Scheme will Exposure in securitized debt 0%-70% of net assets of this scheme with low risk
profile.^Pls refer page no. 1 for reckoner regarding default sub-option in case of
be realized. The Scheme does not guarantee/indicate any returns.
Investment Strategy
In line with the objective of JM G-Sec Fund, the investment strategy has been designed dividend reinvestment. Under Daily Dividend Option the dividend will be automatically reinvested by default.
to ensure safety which is a paramount feature of investment in this fund with returns
Direct Plan shall have a lower expense ratio excluding distribution expenses, comcommensurate to investment in Government Securities.
mission, etc and no commission for distribution of Units will be paid / charged under
The Investment Manager would endeavour to achieve an improved return than the
Direct Plan.
returns traditionally expected from such an instrument by actively managing the portfolio.
Further, by enlarging the basket of Government securities, the safety of the Fund as * No exit load shall be charged for any switch of investments between Existing Plan
a whole will be elevated to the highest degree than what is normally associated with (whether the investments were made before or after the Effective Date) and Direct
Plan within the same scheme. The applicable exit load, if any, will be charged for rean individual security.
demptions/ switch outs of the scheme (i.e. at portfolio level) before the completion of
the stipulated load/ lock-in period. The stipulated load/ lock-in period will be reckoned
Asset Allocation Pattern of the
Normal
Allocation
Type of Instruments
Risk Profile
from the date of allotment of units for a particular transaction in the scheme (i.e. at
Scheme
(% of net assets)
portfolio level) till the date of redemption / switch out from that scheme, irrespective
Government Securities / Treasury Bills 0% to 100%
Low to Medium
of the number of intra-scheme switches by the investor between the aforementioned
CBLO/REPO
0% to 100%
Low
two dates (e.g. switches between plans/sub-plans/options/sub-options within the
The gross notional exposure in derivatives shall not exceed the AuM of the Scheme. scheme having the same portfolio)
Investment Objective

The extant provisions of applicability of load on redemptions/ switches from one


Scheme to another will continue to be applicable.
Mutual Fund Units involve investment risks including the possible loss of principal.
Recurring Expenses:
Please read the SID carefully for details on risk factors before investment.
As per the amendments to the SEBI (Mutual Funds) Regulations, 1996 [SEBI
Plans and Options
Normal Plan: Quarterly Dividend (Payout/Reinvestment sub-option), Monthly Dividend
Regulations] notified vide notification No. LAD-NRO/GN/2012-13/17/21502 dated
(Payout/Reinvestment sub-option), Half Yearly Dividend (Payout/Reinvestment subSeptember 26, 2012 (Notification), the total expenses of the scheme including the
option), Annual Dividend (Payout/Reinvestment sub-option) Growth & Bonus
investment management and advisory fee (for other than Index and Fund of Funds
Direct Plan: Quarterly Dividend (Payout/Reinvestment sub-option), Monthly Dividend Schemes) shall not exceed the limits stated in Regulation 52(6):
(Payout/Reinvestment sub-option), Half Yearly Dividend (Payout/Reinvestment sub- (i) On the first Rs. 100 crore of the daily net assets 2.50%.
option), Annual Dividend (Payout/Reinvestment sub-option) Growth & Bonus
(ii) On the next Rs. 300 crore of the daily net assets 2.25%.
Applicable NAV
Details are set out in subsequent pages.
(iii) On the next Rs. 300 crore of the daily net assets 2.00%.
Minimum Application Amount / Refer JM SCHEMES RECKONER on page 4
(iv) On the balance of the assets 1.75%.
No. of Units
Provided that in respect of a scheme investing in bonds such recurring expenses
Dispatch of Repurchase /
Details are set out in subsequent pages.
shall be lesser by atleast 0.25% of the daily net assets outstanding in each financial
Redemption request
year. In addition to the limits as specified in Regulation 52(6) of SEBI Regulations,
the following costs or expenses can be charged to the schemes of JM Financial
I-SEC Composite Index
Benchmark Index
Mutual Fund (JMF):
Dividend Frequency^
Quarterly
Additional TER of up to 30 basis points on daily net assets of the scheme as per
Dividend Policy
Details are set out in subsequent pages.
regulation 52 of SEBI (Mutual Funds) Regulations, 1996 if the new inflows from
Name of the Fund Manager
Vikas Agrawal
beyond top 15 cities* received by JMF are at least (a) 30% of gross new inflows in
the scheme or (b) 15% of the average assets under management (year to date) of
Performance of the Scheme
Compounded annualized returns (%) of Growth option as on March 31, 2015.
the scheme, whichever is higher. In case the inflows from beyond top 15 cities is
Compounded annualized
Returns
1 Year
3 Years 5 Years
Since Incep.*
less than the higher of (a) or (b) above, then additional TER can be charged on pro
returns
JM G-Sec Fund
14.80
9.39
8.26
10.07
rata basis. The additional TER on account of inflows from beyond top 15 cities so
charged shall be clawed back in case the same is redeemed within a period of 1 year
ISEC Composite Index
15.58
10.30
8.81
NA
from the date of investment. The amount so charged shall be utilised for distribution
* Date of inception = Date of allotment i.e. 29.09.1999
expenses incurred for bringing inflows from such cities. * The top 15 cities shall mean
top 15 cities based on Association of Mutual Funds in India (AMFI) data on AUM
Returns
1 Year
Since Incep.*
by Geography Consolidated Data for Mutual Fund Industry as at the end of the
JM G-Sec Fund (Direct)
15.54
9.22
previous financial year.
ISEC Composite Index
15.58
9.65
Additional expenses not exceeding 0.20 per cent of daily net assets of the scheme,
* Date of inception = 01.01.2013
incurred towards different heads mentioned under sub-regulations (2) and (4) of
Risk Profile of the Scheme

Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

% Returns

Absolute Returns for each financial year for the last 5 years
JM Gsec Fund

18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2014 2015

2013 2014

Bench Mark I Sec Composite Index

2012 2013

2011 2012

2010 2011

Regulation 52. The brokerage and transaction costs which are incurred for the
purpose of execution of trade and is included in the cost of investment shall not
exceed 0.12% in case of cash market transactions and 0.05% in case of derivative
transactions.

The investors shall also note that the contents set out under part E. (iv) under
the head Aggregate fees and expenses charged to the scheme of the Common
Scheme Information Document (SID) of both Equity and Debt Schemes of JMF
stands amended in light of the Notification dated September 26, 2012, whereby the
slabs on Investment Management & Advisory Fee have been withdrawn. As required
under Regulation 52 of the Regulations, the Investment Management & Advisory
Fee would be disclosed in the Scheme Information Document(s) of the Schemes.
The aggregate of the Investment Management & Advisory Fee charged by JMF AMC
and the Expenses will remain within the maximum permissible TER as per Regulation 52 of the Regulations, as amended from time to time.

Entry Load

NIL

Exit Load*

NIL

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.18%, Direct: 1.12%

No. of Folios as on 31.03.2015

304

Service Tax: Service tax on investment and advisory fees will be charged to
the scheme in addition to the maximum limit of TER as per Regulation 52 of the
Regulations. Service tax on other than investment and advisory fees, if any, shall be
borne by the scheme within the maximum limit of TER, as per Regulation 52 of the
Regulations. Service tax on exit load, if any, shall be paid out of the exit load proceeds
and exit load net of service tax, if any, shall be credited back to the scheme.
Investor Education and Awareness: JM Financial Asset Management Limited (JMF
AMC) shall annually set apart 2 basis points on daily net assets within the maximum limit of TER as per Regulation 52 of the Regulations, for investor education and
awareness initiatives.

Quarterly Avg. AUM (In Crores) - 37.82


Jan 15 to Mar 15

CHECKLIST
Please ensure that your Application Form is
Complete in all respects & signed by all applicants.
Name, Address and Contact Details are mentioned in full.
Bank Account Details are entered completely and correctly.
Permanent Account Number (PAN) of all Applicants is mentioned for all investments and verified copy of Pan Card is submitted.
Appropriate Option / Sub-option is selected. If the Dividend Option is chosen, Dividend Payout or Re-investment is indicated.
If units are applied for jointly, Mode of Operation of account is indicated.

KYC Acknowledgement issued by the KRA is submitted irrespective of the amount of investment.

Investment Cheque/Demand Draft is drawn in favour of respective scheme you wish to apply for, dated and signed.
Application Number is mentioned on the reverse of the Cheque/Demand Draft.
Documents, as applicable, are submitted along with the Application Form.
Accompanying documents
Please submit the following documents (where applicable) with your application. All documents should be original / true copies certified by a Director/Trustee/Company/Secretary/Authorised Signatory in case
of Non Individuals and by gazette officer/notarized in case Individuals (Resident, PIOs & NRI).
Documents
Resolution/Authorisation to invest
List of Authorised Signatories with Specimen signature(s)
Memorandum & Articles of Association
Trust Deed
Bye-laws
Partnership Deed
Overseas Auditors Certificate
Notarised Power of Attorney
Bank confirmation of source of funds/FIRC
Proof of Identity
Proof of Address
PAN
KYC Acknowledgement issued by the KRA

Individual

Companies
P
P
P

Societies
P
P

P
P

Partnership
Firms

Investments
through POA
P

Trusts

P
P
P

P
P
P

Flls

PIO

P
P

P
P

P
P
P
P
P

NRI

P
P

P
P
P

P
P
P

P
P
P

P
P
P
P
P

P
P
P

P
P
P
P
P

RISK FACTORS (Equity & Debt)

and the ability to manage the risks as a result of the failure of the counterparty
to comply with the terms of the derivative contract. Other risks in using
derivatives include the risk of mispricing or improper valuation of derivatives,
credit risk where the danger is that of a counterparty failing to honour its
commitment, liquidity risk where the danger is that the derivatives cannot be
sold at prices that reflect the underlying assets, rates and indices and price risk
where the market price may move in adverse fashion.

Standard Risk Factors:


Investment in Mutual Fund Units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal.

As the price / value / interest rates of the securities in which the scheme invests
fluctuates, the value of your investment in the scheme may go up or down

Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future


performance of the scheme.

The names of the schemes do not in any manner indicate either the quality of the
scheme or its future prospects and returns.

The sponsor is not responsible or liable for any loss resulting from the operation of
the scheme beyond the initial contribution of 1 Lac made by it towards setting up
the Fund.

The present scheme is not a guaranteed or assured return scheme.

Derivative products are leveraged instruments and can provide


disproportionate gains as well as disproportionate losses to the investor.
Execution of such strategies depends upon the ability of the fund manager
to identify such opportunities. Identification and execution of the strategies
to be pursued by the fund manager involve uncertainty and decision of fund
manager may not always be profitable. No assurance can be given that the
Fund Manager will be able to identify or execute such strategies.

The risks associated with the use of derivatives are different from or possibly
greater than, the risks associated with investing directly in securities and other
traditional investments and are given in more detail under the head.

ii)

Liquidity or Marketability Risk: This refers to the ease at which a security can
be sold at or near its true value. The primary measure of liquidity risk is the
spread between the bid price and the offer price quoted by a dealer. Liquidity
risk is characteristic of the Indian fixed income market. Trading volumes,
settlement periods and transfer procedures may restrict the liquidity of some
of these investments. Different segments of the Indian financial markets have
different settlement periods, and such periods may be extended significantly
by unforeseen circumstances. The length of time for settlement may affect the
Scheme in the event it has to meet an inordinately large number of redemption
or of restructuring of the Schemes investment portfolio.

iii) Redemption Risk: As the liquidity of the investments made by the Scheme
could, at times, be restricted by trading volumes and settlement periods, the
time taken by the Mutual Fund for redemption of Units may be significant
in the event of an inordinately large number of redemption requests or a
restructuring of the Scheme.

iv) Investment exposure of the Fund with reference to Securitised Debt and
risk factors specific to investments in Securitised papers

The Fund will predominantly invest only in those securitisation issuances


which have a rating of AA and above indicating the high level of safety from
credit risk point of view at the time of making an investment. The Fund will not
invest in foreign securitised debt.

The Fund may invest in various type of securitisation issuances, including but
not limited to Asset Backed Securitisation, Mortgage Backed Securitisation,
Personal Loan Backed Securitisation, Collateralized Loan Obligation /
Collateralized Bond Obligation and so on.

The Fund will conduct an independent due diligence on the cash margins,
collateralisation, guarantees and other credit enhancements and the portfolio
characteristic of the securitisation to ensure that the issuance fits in to the
overall objective of the investment in high investment grade offerings
irrespective of underlying asset class.

Types of securitised debt vary and carry different levels and types of risks. Credit
risk on securitised bonds depends upon the originator and varies depending
on whether they are issued with recourse to originator or otherwise. Even
within securitised debt, AAA rated securitised debt offers lesser risk of default
than AA rated securitised debt. A structure with Recourse will have a lower
credit risk than a structure without recourse.

Other Risk Factors


a) Risk related to Equity & Equity related securities

i)

Trading volumes, settlement periods and transfer procedures may restrict the
liquidity of the investments in equity and equity related securities. Different
segments of the Indian financial markets have different settlement periods
and such periods may be extended significantly by unforeseen circumstances
leading to delays in receipt of sale proceeds. The NAVs of the units of the
Scheme can go up or down because of various factors that affect the capital
markets in general. Macroeconomic factors like changes in tax rates, political
uncertainties, changes in government regulations etc. and industry specific
factors like competition, demand supply, etc. could impact the performance of
the companies in which the Scheme invests.

ii)

Stock Lending

In case the Scheme undertakes stock lending under the Regulations, it may,
at times be exposed to counter party risk and other risks associated with
the securities lending. Unitholders of the Scheme should note that there are
risks inherent to securities lending, including the risk of failure of the other
party, in this case the approved intermediary, to comply with the terms of the
agreement entered into between the lender of securities i.e. the Scheme and
the approved intermediary. Such failure can result in the possible loss of rights
to the collateral put up by the borrower of the securities, the inability of the
approved intermediary to return the securities deposited by the lender and
the possible loss of any corporate benefits accruing to the lender from the
securities deposited with the approved intermediary.

iii) Risk related to ADR/GDR

The Scheme may also invest in ADRs / GDRs as permitted by Reserve Bank
of India and Securities and Exchange Board of India. To the extent that some
part of the assets of the Plans may be invested in securities denominated in
foreign currencies, the Indian Rupee equivalent of the net assets, distributions
and income may be adversely affected by the changes in the value of certain
foreign currencies relative to the Indian Rupee. The repatriation of capital also
may be hampered by changes in regulations concerning exchange controls or
political circumstances as well as the application to it of other restrictions on
investment.

b) Risk related to Debt Instruments


i)

Interest Rate Risk: As with all debt securities, changes in interest rates will
affect the NAVs of the Scheme as the prices of securities generally increase as
interest rates decline and generally decrease as interest rates rise. Prices of long
term securities generally fluctuate more in response to interest rate changes
than of shorter-term securities. Interest rate movements in the Indian debt
markets can be volatile leading to the possibility of large price movements up
or down in debt and money market securities and thereby to possibly large
movements in the NAV.

ii) Credit Risk: Credit risk or default risk refers to the risk that an issuer of a fixed
income security may default (i.e., will be unable to make timely principal and
interest payments on the security). Because of this risk, debentures are sold at
a yield spread above those offered on treasury securities which are sovereign
obligations and generally considered to be free of credit risk. Normally, the
value of a fixed income security will fluctuate depending upon the actual
changes in the perceived level of credit risk as well as the actual event of
default.
iii) Reinvestment Risk: This risk refers to the interest rate levels at which cash
flows received from the securities in the Scheme or from maturities in the
Scheme are reinvested. The additional income from reinvestment is the
interest on interest component. The risk is that the rate at which interim cash
flows can be reinvested will fall.

c)

Common Risk Factors for Equity & Debt Instruments

i)

Derivative Risks: In the derivative markets there are risk factors and issues
concerning the use of derivatives that investors should understand. Derivatives
require the maintenance of adequate controls to monitor the transactions
entered into, the ability to assess the risk that a derivative adds to the portfolio

Risk analysis on underlying asset classes in securitisation

Generally the following asset classes for securitisation are available in India :

(a) Commercial Vehicles

(b) Auto and Two wheeler pools

(c) Mortgage pools (residential housing loans)

(d) Personal Loan, credit card and other retail loans

(e) Corporate loans/receivables

Underlying assets in securitised debt may assume different forms and the
general types of receivables include auto finance, credit cards, home loans or
any such receipts. Credit risks relating to these types of receivables depend
upon various factors including macro economic factors of these industries and
economies. Specific factors like nature and adequacy of property mortgaged
against these borrowings, nature of loan agreement / mortgage deed in case
of home loan, adequacy of documentation in case of auto finance and home
loans, capacity of borrower to meet its obligation on borrowings in case of
credit cards and intentions of the borrower influence the risks relating to the
asset borrowings underlying the securitised debt.

Holders of the securitised assets may have low credit risk with diversified retail
base on underlying assets especially when securitised assets are created by
high credit rated tranches. Risk profiles of Planned Amortisation Class tranches
(PAC), Principal Only Class Tranches (PO) and Interest Only class tranches
(IO) will differ depending upon the interest rate movement and speed of

prepayment.

underlying assets.

In terms of specific risks attached to securitisation, each asset class would have
different underlying risks, however, residential mortgages are supposed to be
having lower default rates as an asset class. On the other hand, repossession
and subsequent recovery of commercial vehicles and other auto assets is fairly
easier and better compared to mortgages. Some of the asset classes such as
personal loans, credit card receivables, etc., being unsecured credits in nature,
may witness higher default rates. As regards corporate loans/receivables,
depending upon the nature of the underlying security for the loan or the
nature of the receivable the risks would correspondingly fluctuate. However,
the credit enhancement stipulated by rating agencies for such asset class
pools is typically much higher and hence their overall risks are comparable to
other AAA rated asset classes. The rating agencies have an elaborate system of
stipulating margins, over collateralisation and guarantees to bring risk limits in
line with the other AA rated securities.

World over, the quality of credit ratings is measured by default rates and stability. An
analysis of rating transition and default rates, witnessed in both international and
domestic arena, clearly reveals that structured finance ratings have been characterized
by far lower default and transition rates than that of plain vanilla debt ratings. Further,
internationally, in case of structured finance ratings, not only are the default rates low but
post default recovery is also high.

The change in market interest rates prepayments may not change the absolute amount
of receivables for the investors, but may have an impact on the re-investment of the
periodic cash flows that the investor receives in the securitised paper.

In the Indian scenario, also, more than 95% of issuances have been AAA rated
issuances indicating the strength of the underlying assets as well as adequacy of credit
enhancement.
Interest Rate Risk

The risks associated with the underlying assets can be described as under :

Limited liquidity & price risk

Credit card receivables are unsecured. Automobile / vehicle loan receivables


are usually secured by the underlying automobile / vehicle and sometimes by
a guarantor. Mortgages are secured by the underlying property. Personal loans
are usually unsecured.

Corporate loans could be unsecured or secured by a charge on fixed assets /


receivables of the company or a letter of comfort from the parent company or
a guarantee from a bank / financial institution. As a rule of thumb, underlying
assets which are secured by a physical asset / guarantor are perceived to be less
risky than those which are unsecured. By virtue of this, the risk and therefore
the yield in descending order of magnitude would be credit card receivables,
personal loans, vehicle /automobile loans, mortgages and corporate loans
assuming the same rating.

Presently, secondary market for securitised papers is not very liquid. There is no assurance
that a deep secondary market will develop for such securities. This could limit the ability
of the investor to resell them. Even if a secondary market develops and sales were to take
place, these secondary transactions may be at a discount to the initial issue price due to
changes in the interest rate structure.

Some of the factors, which are typically analyzed for any pool are as follows :
Size of the loan : generally indicates the kind of assets financed with loans. Also
indicates whether there is excessive reliance on very small ticket size, which may result
in difficult and costly recoveries. To illustrate, the ticket size of housing loans is generally
higher than that of personal loans. Hence in the construction of a housing loan asset pool
for say Rs. 10,000,000/- it may be easier to construct a pool with just 10 housing loans of
Rs. 1,000,000 each rather than to construct a pool of personal loans as the ticket size of
personal loans may rarely exceed Rs. 500,000/- per individual. Also to take this illustration
further, if one were to construct a pool of Rs. 10,000,000/- consisting of personal loans
of Rs. 100,000/- each, the larger number of contracts (100 as against one of 10 housing
loans of Rs. 10 lakh each) automatically diversifies the risk profile of the pool as compared
to a housing loan based asset pool.
Average original maturity of the pool : indicates the original repayment period and
whether the loan tenors are in line with industry averages and borrowers repayment
capacity. To illustrate, in a car pool consisting of 60-month contracts, the original
maturity and the residual maturity of the pool viz. number of remaining installments to
be paid gives a better idea of the risk of default of the pool itself. If in a pool of 100 car
loans having original maturity of 60 months, if more than 70% of the contracts have paid
more than 50% of the installments and if no default has been observed in such contracts,
this is a far superior portfolio than a similar car loan pool where 80% of the contracts have
not even crossed 5 installments.
Loan to Value (LTV) Ratio : Indicates how much % value of the asset is financed by
borrowers own equity. The lower the LTV ratio, the better it is. This ratio stems from
the principle that where the borrowers own contribution of the asset cost is high, the
chances of default are lower. To illustrate for a vehicle costing Rs. 50 lakhs, if the borrower
has himself contributed Rs. 40 lakhs and has taken only Rs. 10 lakhs as a loan, he is going
to have lesser propensity to default as he would lose an asset worth Rs. 50 lakhs if he
defaults in repaying an installment. This is as against a borrower who may meet only Rs. 5
lakhs out of his own equity for a vehicle costing Rs. 50 lakhs. Between the two scenarios
given above, the latter would have higher risk of default than the former.
Average seasoning of the pool : Indicates whether borrowers have already displayed
repayment discipline. To illustrate, in the case of a personal loan, if a pool of assets
consists of those who have already repaid 80% of the installments without default,
this certainly is a superior asset pool than the one where only 10% of the installments
have been paid. In the former case, the portfolio has already demonstrated that the
repayment discipline is far higher.
Default rate distribution : Indicates how much % of the pool and overall portfolio of the
originator is current, how much is in 0-30 DPD (days past due), 30-60 DPD, 60-90 DPD and
so on. The rationale here is very obvious - as against 0-30 DPD, the 60-90 DPD is certainly
a higher risk category.
Unlike in plain vanilla instruments, in securitisation transactions, it is possible to work
towards a target credit rating, which could be much higher than the originators own
credit rating. This is possible through a mechanism called Credit enhancement and is
fulfilled by filtering the underlying asset classes and applying selection criteria, which
further diminishes the risk inherent for a particular asset class. The purpose of credit
enhancement is to ensure timely payment to the investors, if the actual collections
from the pool of receivables for a given period are short of the contractual payouts on
securitisation. Securitisation is normally a non-recourse instrument and therefore, the
repayment on securitisation would have to come from the underlying assets and the
credit enhancement. Therefore, the rating criteria centrally focuses on the quality of the

Limited recourse, delinquency and credit risk


Securitised transactions are normally backed by pool of receivables and credit
enhancement as stipulated by the rating agency, which differ from issue to issue. The
credit enhancement stipulated represents a limited loss cover to the Investors. These
certificates represent an undivided beneficial interest in the underlying receivables and
there is no obligation of either the Issuer or the Seller or the originator, or the parent or
any affiliate of the seller, issuer and originator. No financial recourse is available to the
certificate holders against the investors representative. Delinquencies and credit losses
may cause depletion of the amount available under the credit enhancement and thereby
the investor payouts may get affected if the amount available in the credit enhancement
facility is not enough to cover the shortfall. On persistent default of an obligor to repay
his obligation, the servicer may repossess and sell the underlying asset. However many
factors may affect, delay or prevent the repossession of such asset or the length of time
required to realize the sale proceeds on such sales. In addition, the price at which such
asset may be sold may be lower than the amount due from that obligor.
Risks due to possible prepayments: Weighted Tenor / Yield
Asset securitisation is a process whereby commercial or consumer credits are packaged
and sold in the form of financial instruments. Full prepayment of underlying loan
contract may arise under any of the following circumstances :

Obligor pays the receivable due from him at any time prior to the scheduled
maturity date of that receivable; or

Receivable is required to be repurchased by the seller consequent to its inability to


rectify a material misrepresentation with respect to that receivable; or

The servicer recognizing a contract as a defaulted contract and hence repossessing


the underlying asset and selling the same; or

In the event of prepayments, investors may be exposed to changes in tenor and


yield.

Bankruptcy of the originator or seller


If originator becomes subject to bankruptcy proceedings and the court in the
bankruptcy proceedings concludes that the sale from originator to Trust was not a sale
then an investor could experience losses or delays in the payments due. All possible care
is generally taken in structuring the transaction so as to minimize the risk of the sale
to Trust not being construed as a True Sale. Legal opinion is normally obtained to the
effect that the assignment of Receivables to Trust in trust for and for the benefit of the
Investors, as envisaged herein, would constitute a true sale.
Bankruptcy of the investors agent
If an investors agent becomes subject to bankruptcy proceedings and the court in the
bankruptcy proceedings concludes that the recourse of investors agent to the assets/
receivables is not in its capacity as agent/Trustee but in its personal capacity, then
an investor could experience losses or delays in the payments due under the swap
agreement. All possible care is normally taken in structuring the transaction and drafting
the underlying documents so as to provide that the assets/receivables if and when held
by investors agent is held as agent and in Trust for the investors and shall not form part
of the personal assets of investors agent. Legal opinion is normally obtained to the effect
that the investors agents recourse to assets/receivables is restricted in its capacity as
agent and Trustee and not in its personal capacity.
Credit Rating of the Transaction / Certificate
The credit rating is not a recommendation to purchase, hold or sell the certificate in
as much as the ratings do not comment on the market price of the certificate or its
suitability to a particular investor.
There is no assurance by the rating agency either that the rating will remain at the same
level for any given period of time or that the rating will not be lowered or withdrawn
entirely by the rating agency.
Risk of Co-mingling

The servicers normally deposit all payments received from the obligors into the
collection account. However, there could be a time gap between collection by a servicer
and depositing the same into the collection account especially considering that some
of the collections may be in the form of cash. In this interim period, collections from the
Loan Agreements may not be segregated from other funds of the servicer. If the servicer
fails to remit such funds due to investors, the investors may be exposed to a potential
loss.
Risk factors associated with processing of transaction through Stock Exchange
Mechanism:

m) Specific Risk Factors associated with investments in JM Tax Gain Fund


Apart from the risk factors mentioned above, the investors in JM Tax Gain Fund
would face the following risks:

i.

The Scheme may not be able to invest in the suitable securities falling within
its investment parameters leading the Scheme to hold short term deposits of
scheduled commercial banks till the monies are deployed as per the investment
objective of the Scheme or invest the same in other suitable securities leading to
substantial reduction in the earning capability of the Scheme.

ii.

In the event of an inordinately large number of redemption requests, the Scheme


may face an asset-liability mismatch requiring the investment manager to make a
distress sale of the securities leading to realignment of the portfolio consequently
resulting in investment in liquid instruments.

The trading mechanism introduced by the stock exchange(s) is configured to accept


and process transactions for mutual fund units in both Physical and Demat Form. The
allotment and/or redemption of Units through NSE and/or BSE, on any Business Day
will depend upon the modalities of processing viz. collection of application form, KYC
documentation, order processing/ settlement, etc. upon which the Fund has no control.
Moreover, transactions conducted through the stock exchange mechanism shall be
governed by the operating guidelines and directives issued by respective recognized
stock exchange(s).

n) Specific Risk Factors associated with investments in JM Core 11 Fund

v) Risks associated with Short Selling and Securities Lending -

The risks in lending portfolio securities, as with other extensions of credit, consist
of the failure of another party, in this case the approved intermediary, to comply
with the terms of agreement entered into between the lender of securities i.e. the
Scheme and the approved intermediary. Such failure to comply can result in the
possible loss of rights in the collateral put up by the borrower of the securities, the
inability of the approved intermediary to return the securities deposited by the
lender and the possible loss of any corporate benefits accruing to the lender from
the securities deposited with the approved intermediary.

iii. The tax benefits available to investors in accordance with the ELSS Guidelines may
be withdrawn / changed in future from time to time as may be decided by the
Central Board of Direct Taxes.
Apart from the risk factors mentioned above, the investors in JM Core 11 Fund
should note that the Scheme is designed for investment in only 11 stocks at any
point of time and as such the performance of these stocks would have a direct
bearing on the performance of Scheme. Unitholders should also note that as there
will be concentration of investments in only 11 stocks, the Scheme carries the risk of
non-diversification. Therefore, the NAV of this Scheme would be dependent upon
the performance and market price movement of such companies in the Scheme
and will be more volatile compared to the NAV of a scheme with more diversified
portfolio.

Scheme Specific Risk Factors (Equity)

RISK MITIGATION MEASURES FOLLOWED:

l)

Risk specific to Sector Scheme (JM Basic Fund)

A Unitholder in JM Basic Fund should note that these Schemes are designed as
Sectoral Scheme with the aim to invest only in the Sector specified in the Scheme
Information Documents and as such the performance of the sector would have a
direct bearing on the performance of Scheme Unitholders should also note that
there might be concentration of investments in companies of the basic industries
thereby carrying the risk of non-diversification. Therefore, the NAV of this Scheme
would be dependent upon the performance and market price movement of such
companies in the sector. Hence the movement in the NAV of this Scheme will be
more volatile compared to the NAV of a scheme with more diversified portfolio.

Risk management is an integral part of the investment process. The AMC incorporates
adequate safeguards for controlling risks in the portfolio construction process, which
would be periodically evaluated. Online monitoring of various exposure limits are done
by the Front Office System. The system incorporates all the investment restrictions
as per SEBI guidelines and soft warning alerts at appropriate levels for preemptive
monitoring. The system also enables identifying & measuring the risk through various
risk measurement tools and analyzes the same so as to act in a preventive manner. In
addition to minimize the major risks for equity & debt schemes, the following steps are
taken

The performance of JM Basic Fund is being benchmarked against BSE 200.

The investment universe of the Scheme(s) shall be those companies appearing


in the selected benchmark indices. However, the exposure to any company shall
be restricted at 10% of NAV or sector weightage at the time of investment. The
Scheme(s) may also invest in the companies of sectors which are outside these
indices/universe and such exposure per such company will be restricted to 10%
of the NAV. However, such companies classified under the sector would be those
which are publicly recognized under that sector and / or by agencies like AMFI/ NSE/
BSE. Investors may note that they cannot invest directly into the benchmark indices.

Tracking Error

Market Risk / Volatility Risk Risk of adverse price movements in the portfolio
The overall volatility of the respective portfolios would be maintained in line with the
objective of the scheme. The portfolio would be adequately diversified to mitigate
volatility depending on its respective mandate. Volatility would be monitored on with
respect to the benchmark and peer set.
Concentration Risk - Risk of undue concentration in single stock
The AMC has investment policy in place that ensures that the equity portfolios are
reasonably diversified in line with the objective of the scheme. JM Core 11 fund will be
an exception to the above since the fund invests only in 11 stocks. Hence its volatility and
concentration risk will be higher. The investors of the respective schemes are apprised
of the same.

Tracking errors are inherent in any sectoral / index fund and such errors may cause the
Schemes to generate returns which are not in line with the performance of the BSE 200
or one or more securities covered by / included in the said customized indices and may
arise from a variety of factors including but not limited to:

The scheme may also use derivatives and other hedging instruments, as permitted, from
time to time, in order to protect the value of the portfolio.

i.

Any delay in the purchase or sale of shares due to illiquidity in the market, settlement
and realisation of sales proceeds, delay in registration of securities or in receipt and
consequent reinvestment of dividends, etc.

ii.

The indices reflect the prices of securities at a point in time, which is the price at the
close of business day on The Stock Exchange, Mumbai / National Stock Exchange.
The Schemes however, may trade these securities at different points in time during
the trading session and therefore the prices at which the Schemes trade may not be
identical to the closing price of each scrip on that day on the BSE / NSE. In addition,
the Schemes may opt to trade the same securities on different exchanges due to
price or liquidity factors, which may also result in traded prices being at variance,
from BSE / NSE closing prices.

Depending on the mandate of the respective equity schemes, some part of the scheme
is invested in large cap stocks which are actively traded and thereby liquid. The fund
manager may also keep some portion of the portfolio in debt and money market
instruments and/or cash within the specified asset allocation framework for the purpose
of meeting redemptions. The overall liquidity of the schemes are monitored periodically
and necessary action taken on the portfolios if required. The debt/money market
instruments that are invested by the fund also has a short term duration.

iii. BSE may drop existing securities that are represented in their respective indices
or include new ones. In such an event, the Schemes will endeavor to reallocate its
portfolio to mirror the changes. However, the reallocation process may not occur
instantaneously and permit precise mirroring of the said customized indices during
this period.
iv. The potential of trades to fail may result in the Schemes not having acquired the
security at the price necessary to mirror the indices.
v.

Transaction and other expenses, such as but not limited to brokerage, custody,
trustee and asset management fees.

vi. There will be times when the Schemes may not be able to acquire or sell the desired
number of securities due to conditions prevailing in the securities market such as,
but not restricted to : circuit filters, delisting of securities, liquidity and volatility in
security prices.

Liquidity Risk Risk if liquidity impact of entering/exiting the underlying stocks


in the portfolio.

Scheme Specific Risk Factors (Debt)


Specific Risk Factors associated with investments JM MIP Fund
Risk related to Equity & Equity related securities
A Unitholder in the Scheme which invests in equity and equity related instruments
should be aware of the risks generally associated with investments in the equity
and equity related securities. Below are some of the common risks associated with
investments in equity and equity related securities.
As these Schemes propose to invest in equities and equity related instruments, they will
be subjected to normal risks associated with equity markets.
NAV of these Schemes are linked to equity performance of the companies in which they
invest.
Macroeconomic factors like changes in tax rates, political uncertainties, change in
government regulations etc. and industry specific factors like competition, demand
supply etc. could impact the performance of the companies in which the scheme invests.
Trading volumes, settlement periods and transfer procedures may restrict the liquidity
of these investments. The inability of the scheme(s) to make intended security purchases
due to settlement problems could also cause the scheme(s) to miss certain investment

opportunities.

4.

Applicable NAV and allotment of units:

The scheme(s) may also use various derivative and hedging products from time to time,
as would be available and permitted by SEBI, in an attempt to protect the value of the
portfolio and enhance unitholders interest.

The provisions of applicability of NAV and allotment of units in case of Direct Plan
will be as are currently applicable for the Normal Plan.

5.

Eligible investors / modes for applying: All categories of investors (whether existing
or new Unitholders), as permitted under the SID of the Schemes, are eligible to
subscribe under Direct Plan. Investments under Direct Plan can be made through
various modes offered by the Mutual Fund for investing directly with the Mutual
Fund {except Stock Exchange Platform(s) and all other Platform(s) where investors
applications for subscription of units are routed through Distributors}.

Risk Mitigation Measures Followed:


Risk management is an integral part of the investment process. The AMC incorporates
adequate safeguards for controlling risks in the portfolio construction process, which
would be periodically evaluated. Online monitoring of various exposure limits are
done by the Front Office System. The system incorporates all the investment restrictions
as per SEBI guidelines and soft warning alerts at appropriate levels for preemptive
monitoring. The system also enables identifying & measuring the risk through various
risk measurement tools and analyzes the same so as to act in a preventive manner. In
addition to minimize the major risks for equity & debt schemes, the following steps are
taken.
Credit Risk Risk of investing in unsustainable / weak companies

In depth credit evaluation of the money market and debt instruments (other than
GSecs) proposed to be invested in.

Issuer wise and Industry wise exposure limits

Independent rating of scheme portfolio by recognized rating agency.

Defining the minimum rating grades at position and portfolio level

6.

How to apply:

(a) Investors subscribing under Direct Plan of a Scheme will have to indicate Direct
Plan against the Scheme name in the application form/ transaction slip e.g. JM
Equity Fund (Direct).

(b) Investors may also indicate Direct in the ARN column of the application form/
transaction slip. However, in case Distributor/ Sub-broker code is mentioned in
the application form, but Direct Plan is indicated against the Scheme name or in
any other place or in any manner whatsoever in the Application Form/ transaction
slip, the Distributor/ Sub-broker code will be ignored and the application will be
processed under Direct Plan.

(c) Further, where application is received for Normal Plan without Distributor code
or Direct is mentioned in the ARN Column, the application will be processed
under the Direct Plan.

Interest Rate Risk Risk of bond prices falling as aresult of rise in interest rates

Active duration management

7.

Existing Investments:

Cap on Average Portfolio maturity depending upon the scheme objective and
Strategy.

Portfolio exposure spread over various maturities depending on the mandates of


the respective schemes

(a) Investors wishing to transfer their accumulated unit balance held under
Normal Plan (through lumpsum / systematic investments made with or without
Distributor code) to Direct Plan will have to switch /redeem their investments
(subject to applicable Exit Load, if any) and apply under Direct Plan.

(b) Investors who have invested without Distributor code and have opted for
Dividend Reinvestment facility under Normal Plan may note that the dividend
will continue to be reinvested in the Normal Plan only.

Liquidity Risk High impact cost at the time of buying/selling


Focus on good quality paper having good liquidity in the market at the time of
portfolio construction

Asset-Liability management

8.

Investments through systematic routes:

(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP)
etc. registered prior to the Effective Date without any distributor code under the
Normal Plan, installments falling on or after the Effective Date will automatically
be processed under the Direct Plan only.

INTRODUCTION OF DIRECT PLAN

In accordance with Para D titled Separate Option for direct investments under Circular
No. CIR/IMD/DF/21/2012 dated September 13, 2012 issued by Securities and Exchange
Board of India (SEBI), JM Financial Trustee Company Private Limited, (the Trustee to the
Mutual Fund), decided to introduce a separate plan for direct investments (i.e. investments
not routed through an AMFI Registration Number (ARN) Holder (Distributor) (hereinafter
referred to as Direct Plan) with effect from January 1, 2013 (the Effective Date) as under:

(b) Investors who had registered for SIP facility prior to the Effective Date with
distributor code shall continue under the Normal Plan. However if the investor
wishes that their future installments be invested into the Direct Plan, he shall
make a written request to the Mutual Fund in this behalf. The Mutual Fund will
take at least 15 Business days to process such requests. Intervening installments
will continue in the Normal Plan.

The scheme may also use derivatives and other hedging instruments, as permitted, from
time to time, in order to protect the value of the portfolio.
INFORMATION COMMON TO ALL SCHEMES

1.

Introduction of Direct Plan: Direct Plan is only for investors who purchase/subscribe
units in a Scheme directly with the Mutual Fund and is not available for investors who
route their investments through a Distributor.

In case of (a) and (b) above, the terms and conditions of the Normal registered
enrolment such as tenure , amount of the SIP etc. shall continue to apply.

Scheme eligibility: The Mutual Fund shall introduce Direct Plan in all the open-ended
schemes of the Mutual Fund (hereinafter referred as Schemes) except in the plans
discontinued for further subscriptions.

(c) In case of Systematic Transfer Facilities which were registered with a Distributor
Code under the Normal Plan prior to the Effective Date, the future installments
under the said Facilities shall continue as under the Normal Plan

2.

Plans / Options / Sub-options: All Plans / Options / Sub-Options being offered under
the Schemes (Normal Plan) will also be available for subscription under the Direct
Plan. Thus, from the Effective Date, there shall be 2 Plans available for subscription
under the Schemes viz., Normal Plan and Direct Plan. Portfolio of the Scheme under
the Normal Plan and Direct Plan will be common.

9. Redemption requests: Where Units under a Scheme are held under both Normal
and Direct Plans and the redemption / Switch request pertains to the Direct Plan, the
same must clearly be mentioned on the request (along with the folio number).

The provisions pertaining to Minimum Subscription Criteria, Load and Additional


Purchases will be applicable at Scheme (Portfolio) Level.

3.

Scheme characteristics: Scheme characteristics such as Investment Objective, Asset


Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and
conditions including load structure will be the same for the Normal Plan and the
Direct Plan, except that:

No exit load shall be charged for any switch of investments between Normal Plan
(whether the investments were made before or after the Effective Date) and Direct
Plan within the same scheme. The applicable exit load, if any, will be charged for
redemptions/ switch outs of the scheme (i.e. at portfolio level) before the completion
of the stipulated load/ lock-in period. The stipulated load/ lock-in period will be
reckoned from the date of allotment of units for a particular transaction in the scheme
(i.e. at portfolio level) till the date of redemption / switch out from that scheme,
irrespective of the number of intra-scheme switches by the investor between the
aforementioned two dates (e.g. switches between plans/sub-plans/options/suboptions within the scheme having the same portfolio)

In case such investors wish to invest under the Direct Plan through these facilities,
they would have to cancel their Normal enrolments and register afresh for such
facilities.

In the event of the investor not clearly mentioning the name of the Plan (Normal
or Direct)/ Option/ Sub-option/or wherever there is an ambiguity in choice of Plan
(Normal or Direct)/ Option/ Sub-option opted for in the request for redemption/
switch-out of all/specified amount/units, in the absence of clarificatory letter from
the investor on the day of the transaction, the AMC/ Registrar reserves the right to
process the redemption/switch out request from the Normal Plan or Direct Plan if
such redemption request can be processed in totality. In such case, the redemption
will first be effected from the Normal Plan.

E.g. If an investor has investment of Rs. 5 lakh in an Normal Plan and Rs. 10 lakh in the
Direct Plan and a redemption request is received from him for redemption of Rs. 2
lakh without indicating which Plan the redemption is to be effected from, the AMC/
Registrar will effect the redemption from the Normal Plan. In the same example, if
the redemption request was for Rs. 7 lakh, the redemption would be effected from
the Direct Plan.

However, in case it is not possible to effect the redemption from any one of the Plans
in totality i.e. either from the Normal or from the Direct Plan, such redemption request
will be treated as void ab-initio and rejected.

The extant provisions of applicability of load on redemptions/ switches from one


Scheme to another will continue to be applicable.

E.g. If the redemption request in the above example is for Rs. 12 lakh, the AMC /
Registrar will summarily reject the redemption request.

Direct Plan shall have a lower expense ratio excluding distribution expenses,
commission, etc and no commission for distribution of Units will be paid / charged
under Direct Plan.

Where units are held under any one i.e. under Normal or Direct Plan, the redemption
will be processed from such Plan.

10. Tax consequences: Switch / redemption may entail tax consequences. Investors

should consult their professional tax advisor before initiating such requests.
Surviving Plan and Suspended Plan
As per SEBI Circular no. CIR/IMD/DF/21/2012 dated September 13, 2012, with effect from
October 1, 2012, fresh subscriptions (including SIPs/Switches) shall be accepted under
only one plan of JM High Liquidity Fund, JM Floater Long Term Fund (previously known
as JM Floater Fund Long Tem Plan) and JM Short Term Fund (herein referred as surviving
plan) and not in any other plans (suspended plans).
The suspended plans are as follows:
Sr.
no.

Schemes

Plans

Options

JM High Liquidity Fund

Institutional
Plan

a. Daily Dividend
b. Weekly Dividend
c. Growth

Super
Institutional
Plan

a. Daily Dividend
b. Weekly Dividend
c. Growth

Regular
Plan

a. Daily Dividend
b. Dividend
c. Growth
a. Daily Dividend
b. Weekly Dividend
c. Dividend
d. Growth

JM Short term Fund

JM Floater Long Term


Fund (Earlier known as JM
Floater Fund - Long Term
Plan)

Premium
Plan

JM MIP Fund

Growth

Suspended
w.e.f
October
1, 2012

a. Capital
December
Appreciation
28, 2012
Withdrawal
b. Fixed Amount
Withdrawal
Any subscriptions received under the suspended plans of the aforesaid schemes, will be
processed under their surviving plans. Only redemptions/ switch outs will be permitted
in the suspended plans. Subscriptions received under the suspended plans or in case of
any ambiguity in transaction slip / absence of any clarificatory letter, the transactions will
be processed under the Surviving Plan only.

the discrepancy in the scheme name mentioned in the application form/transaction slip
and Cheque/Demand Draft.
Exchange Platforms:
SEBI vide its Circular No. SEBI/IMD/CIR No. 11/183204/2209 dated November 13, 2009
had facilitated transactions in Mutual Fund schemes through the stock exchanges
infrastructure. Also, vide Circular No. CIR/IMD/DF/17/2010 dated November 09, 2010, SEBI
had permitted routing of Mutual Fund transactions through the clearing members of the
registered stock exchanges and Depository Participants of registered Depositories. In view
of this and in order to increase the network and enhance the level of service to the investors
of JM Financial Mutual Fund, the Boards of JM Financial Asset Management Limited (the
AMC) and JM Financial Trustee Company Private Limited (the Trustees) decided to offer
an alternate platform to facilitate purchase (subscription) and redemption (repurchase)
of units of all the eligible schemes of the Mutual Fund. This facility is offered in terms of
the aforesaid SEBI circular and the guidelines issued by National Stock Exchange of India
Ltd. (NSE) and BSE Ltd. (BSE) in this regard.
Following are the exchange platforms through which investors can subscribe/redeem
the units of certain schemes:
a) Mutual Fund Service System (MFSS) introduced by NSE.
b) BSE Stock Exchange Platform (BSE StAR MF) introduced by BSE.
Features of the MFSS introduced by NSE:
a) MFSS is an online order collection system provided by NSE to its eligible members for
placing subscription or redemption orders on the MFSS, based on orders received
from the investors.
b) MFSS has been designed to provide a confirmation slip of the order(s) entered,
which would be deemed to be the time of receipt of application for the purpose of
determining the applicability of NAV.
c) MFSS facility shall be subject to such operating guidelines as may be issued by NSE
from time to time.
Features of the BSE StAR MF introduced by BSE:
a) The trading member of BSE can facilitate investors to subscribe and redeem the mutual
fund units using their existing network and order collection mechanism provided by
BSE.

The surviving plans of the Schemes have been renamed as under (hereinafter referred
to as surviving plans)

b) The transactions carried out on the BSE platform shall be subject to such guidelines
as may be issued by BSE and also SEBI (Mutual Funds) Regulations, 1996 and circulars/
guidelines issued thereunder from time to time.

JM High Liquidity Fund Regular Plan as JM High Liquidity Fund,

1) Basic points to be noted by the investors:

JM Floater Long Term Plan Regular Plan as JM Floater Long Term Fund

JM Short Term Fund Institutional Plan as JM Short Term Fund

i) Who can avail of this facility and is it available for all modes//options of
investment?:

This facility is available for purchase (subscription) and redemption (repurchase) of


units of the aforesaid eligible schemes to the existing and new investors. The
list of aforesaid schemes is subject to change from time to time.

This facility is available only to Corporate investors, individuals, HUF and Minors
acting through a guardian, who are Resident in India.

This facility is not available to Societies/Trusts/Overseas Corporate Bodies (OCBs)/


Partnership Firms, etc.

With respect to re-investment of dividend in the aforesaid schemes the following is


effective:

Dividend Reinvestment sub-option shall not be available to investors for


transacting through stock exchange in demat form.

1.

This facility is not available for switching of units or facilities like SWP/STP.

Currently, this facility can be availed only for the purpose of redemption, in case
of Direct Plans. As and when permitted by the Exchanges, this facility may also
be available for purchase (subscription).

The suspended plans mentioned in the table above will continue till the existing investors
remain invested in the plans.
From November 1, 2012, all Systematic Investment Plans (SIPs), Systematic Transfer Plans
(STPs), Dividend Reinvestment Facilities of the Suspended Plans will automatically stand
discontinued. However, the investor may opt for investment in Surviving Plan or any
other scheme of JM Financial Mutual Fund by registering for fresh SIPs/STPs/ Dividend
Reinvestment.

Dividend accrued (if any) under any Dividend Option (Dividend Re-investment being
its sub option) of the suspended plans shall be re-invested in the corresponding
options under the surviving plans of the respective Schemes, if such dividend per
folio, per occasion is upto Rs. 2000/-. In such scenario, the same folio number will have
units in two plans, i.e. units created till October 31, 2012 in suspended plans and units
created from November 01, 2012 in the surviving plans. Investors are requested to
mention the specific plan/option while submitting any transaction requests.

In case, such dividend is more than Rs. 2000/- per folio, per occasion, the same shall
be considered for dividend payout.

2.

For the above re-investment of dividend in surviving plans, the minimum investment
amount criteria/lock in period/load structure applicable for purchases/switch in
under the surviving plans shall not apply. However, the minimum redemption
amount/units criteria under the surviving plans shall apply.

ii) Whom should the investor approach for transacting in units of the eligible
schemes of the Mutual Fund?:

Option for holding the units:


Units shall be allotted in physical form or dematerialised form as per the request of
the investor.

Investors have an option to hold the units in physical or dematerialized form.

International Security Identification Number (ISIN) in respect of each plans/options


of the aforesaid schemes have been created and admitted in the National Securities
Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL).

i)

Purchase of units:

In case of fresh/additional purchase:


Pursuant to Association of Mutual Funds in India (AMFI) Best Practice Guidelines Circular
No. 48/2014-15 dated June 24, 2014, the investors are hereby informed that in case of
fresh/additional purchases, if the name of a particular Scheme on the application form/
transaction slip differs from the name on the Cheque/Demand Draft (payment instrument),
then (the AMC) shall process the application and allot units at the applicable Net Asset
Value of the scheme mentioned in the application form/transaction slip duly signed by
the investor, given that the same constitutes a valid legal document between the investor
and the AMC.

The investor has to approach a trading member of NSE and BSE who are registered
with Association of Mutual Funds in India (AMFI) as Mutual Fund Advisors and who
are empanelled as a distributor with the AMC and also registered with NSE and BSE as
Participants (AMFI certified stock exchange brokers) for MFSS and BSE StAR Platform.

a)

Physical Form:

The investor who chooses the physical mode is required to submit all requisite
documents along with the purchase application (subject to applicable limits
prescribed by BSE/NSE) to the Participants.

The Participants shall verify the application and documents for mandatory details

The AMC reserves the right to call for other additional documents as may be required, for
processing such transactions. The AMC also reserves the right to reject such transactions.
The AMC, thereafter, shall not be responsible for any loss suffered by the investor due to

and KYC compliance.


After completion of the verification, the purchase order will be entered in the
Stock Exchange system and an order confirmation slip will be issued to investor.

The investor will transfer the funds to the Participants.

Allotment details will be provided by the Participants to the investor.

b) Dematerialised form:

guidelines issued by SEBI in this regard. With respect to investors who transact through
stock exchange, applicable NAV shall be reckoned on the basis of the time stamping as
evidenced by confirmation slip given by stock exchange mechanism and subject to receipt
of funds by AMC/Mutual Fund before the cut off time of the respective schemes.
Investors should get in touch with Investor Service Centres (ISCs) of the Mutual Fund for
further details.
For any complaints or grievances against the Eligible Stock Broker with respect to the
transactions done through the stock exchange infrastructure, the investor should contact
either the concerned Eligible Stock Broker or the investor grievance cell of the respective
stock exchange.

The investors who intend to deal in depository mode are required to have a
demat account with CDSL/NSDL.

The investor who chooses the depository mode is required to place an order for
purchase of units (subject to applicable limits prescribed by BSE/NSE) with the
Participants.

The investor should provide their depository account details to the Participants.

Applicability of Net Asset Value (NAV) and allotment of units under the Bonus Option:

The purchase order will be entered in the Stock Exchange system and an order
confirmation slip will be issued to investor.

The investor will transfer the funds to the Participants.

Allotment details will be provided by the Participants to the investor.

Units will be allotted for valid applications received before cut off time (subject to
provisions on realization of funds) under Bonus Option of the respective Plan i.e. Normal
Plan/Direct Plan at the NAV of the corresponding Plan under the Growth Option on the
dates of investment(s) in respective Schemes. Thereafter, separate NAVs will be calculated
and published for Bonus Option in that Plan. Eg: If transaction is received under the Bonus
Option in the Normal/Direct Plan on June 30, 2014, then the transaction will be processed
at the applicable NAV of the Growth Option in the Normal/Direct Plan on the date of
investment in the respective Plan i.e. at the NAV applicable for transactions received on
June 30, 2014 (subject to adherance to cut-off timings).

ii) Redemption of units:


a) Physical Form:

The investor who chooses the physical mode is required to submit all requisite
documents along with the redemption application (subject to applicable limits
prescribed by BSE/NSE) to the Participants.

The redemption order will be entered in the Stock Exchange system and an
order confirmation slip will be issued to investor. Redemption orders would be
created either in terms of amount or quantity.

The redemption proceeds will be credited to the bank account of the investor,
as per the bank account details recorded with the Mutual Fund.

b) Dematerialised form:

The investors who intend to deal in depository mode are required to have a
demat account with CDSL/ NSDL and units converted from physical mode to
demat mode prior to placing of redemption order.

The investor who chooses the depository mode is required to place an order
for redemption (subject to applicable limits prescribed by BSE/NSE) with the
Participants. The investors should provide their Depository Participant with
Depository Instruction Slip with relevant units to be credited to Clearing
Corporation pool account.

The redemption order will be entered in the system and an order confirmation
slip will be issued to investor. Redemption orders would be created in terms of
units without any minimum limit and not in terms of amount.

The redemption proceeds will be credited to the bank account of the investor,
as per the bank account details recorded with the Depository Participant.

3) Investors shall receive redemption amount (if units are redeemed) and units (if units
are purchased) through broker/clearing members pool account. The Mutual Fund/
AMC would pay proceeds to the broker/clearing member (in case of redemption) and
broker/clearing member in turn to the respective investor and similarly units shall be
credited by AMC/Mutual Fund into broker/clearing members pool account (in case
of purchase) and broker/clearing member in turn to the respective investors demat
account.

Payment of redemption proceeds to the broker/clearing members by AMC/Mutual


Fund shall discharge AMC/Mutual Fund of its obligation of payment to individual
investor. Similarly, in case of purchase of units, crediting units into broker/clearing
member pool account shall discharge AMC/ Mutual Fund of its obligation to allot
units to individual investor.

4) Applications for purchase/redemption of units which are incomplete/invalid are liable


to be rejected.
5) In case of units held in demat form, the redemption request can be given only in
number of units and subject to the provision pertaining to minimum repurchase
amount.

The Trustee of the Mutual Fund reserves the right to change/modify the features of this
facility or discontinue this facility at a later date.

Applicability of Net Asset Value (NAV) and allotment of units under the Annual
Bonus Option:
Units will be allotted for valid applications received before cut off time (subject to
provisions on realization of funds) under Annual Bonus Option of the respective Plan i.e.
Normal Plan/Direct Plan at the NAV of the corresponding Plan under the Growth Option
on August 1, 2014, in respective Schemes. Thereafter, separate NAVs will be calculated and
published for Annual Bonus Option in that Plan and Annual Bonus Option shall be available
for subscription/redemption at NAV based prices on all business days.
If no subscription is received in Annual Bonus Option in any of the Plan(s) under the
Schemes on August 1, 2014, then in such case, for subscriptions received after August 1,
2014 in Annual Bonus Option, the NAV of corresponding Growth option under respective
Plan(s) of the Schemes will be applicable, based on time of receipt of application and
availability of funds for utilization by the Schemes (as applicable).
Allotment of Bonus units, if any, will not impact the total value of units held but would only
increase number of units held by investor. Pursuant to allotment of Bonus Units, the NAV of
units under the respective Bonus option would fall in proportion to bonus units allotted.
In terms of SEBI circular dated March 18, 2008, units issued as bonus units will not be
subject to exit load.
Investors are advised to consult their tax advisor to understand the tax implications for
subscribing to/redeeming the units of Annual Bonus Option.
Applicability of Net Asset Value (NAV) and allotment of units under the Half Yearly
Bonus Option & Quarterly Bonus Option:
Units will be allotted for valid applications received before the cut off time (subject to
provisions on the realization of funds) under Half Yearly and Quarterly Bonus Option of the
respective Plan i.e. Normal Plan/Direct Plan at the NAV of the corresponding Plan under
the Growth Option on the effective date, in respective Schemes. Thereafter, separate NAVs
will be calculated and published for Half Yearly and Quarterly Bonus Options in that Plan
and the said options shall be available for subscription/redemption at NAV based prices
on all business days.
If no subscription is received in Half Yearly and Quarterly Bonus Option in any of the Plan(s)
under the Schemes on the effective date, then in such case, for subscriptions received after
the effective date in Half Yearly and Quarterly Bonus Option, the NAV of corresponding
Growth option under respective Plan(s) of the Schemes will be applicable, based on time of
receipt of application and availability of funds for utilization by the Schemes (as applicable).
Allotment of Bonus units, if any, will not impact the total value of units held but would only
increase number of units held by investor. Pursuant to allotment of Bonus Units, the NAV of
units under the respective Bonus option would fall in proportion to bonus units allotted.
In terms of SEBI circular dated March 18, 2008, units issued as bonus units will not be
subject to exit load.

6) Separate folios will be allotted for units held in physical and demat mode. In case
of non-financial requests/applications such as change of address, change of bank
details, etc. investors should approach Investor Service Centres (ISCs) of the Mutual
Fund if units are held in physical mode and the respective Depository Participant(s)
if units are held in demat mode. In case of KYC compliant investors, the non-financial
requests/applications shall be submitted by the investors to their respective KYC
Registration Agencies (KRAs).

Investors are advised to consult their tax advisor to understand the tax implications for
subscribing to/redeeming the units of the Half Yearly and Quarterly Bonus Option of the
above mentioned Schemes.

Investors will have to comply with Know Your Customer (KYC) norms as prescribed by BSE/
NSE/ CDSL/ NSDL and the Mutual Fund to participate in this facility.

A. Equity Schemes

The Mutual Fund will not be in a position to accept any request for transactions or service
requests in respect of units bought under this facility in demat mode.

The bonus declaration is subject to earnings and the amount standing to the credit of the
reserves of the Bonus Option of the Scheme.

Applicable NAV
For subscription (purchase)/switch-in:

In case of availing this facility for the New Fund Offers (NFOs), the units will be allotted
directly to the investors by the Registrar and Transfer Agent (RTA). Also, NFO refunds will
be made directly to the bank account of the investors by the RTA.

In respect of valid applications received upto 3 p.m. by the Mutual Fund at any of its
Investor Service Centers alongwith a local cheque or a demand draft payable at par at
the place where the application is received, the closing NAV of the business day on which
application is received shall be applicable.

The cut off timing and applicability of Net Asset Value (NAV) shall be subject to the

In respect of valid applications received after 3 p.m. by the Mutual Fund alongwith a local

cheque or a demand draft payable at par at the place where the application is received,
the closing NAV of the next business day shall be applicable.
Effective October 1, 2012, under all equity schemes, in respect of application for purchase/
switch-in of units of an amount equal to or more than Rs. 2 lakhs, the closing NAV of the
day on which the funds are available for utilisation shall be applicable provided that

eligible for NAV of the business day on which the redemption requests are time-stamped
upto the cut-off time at the ISC for all schemes other than liquid schemes. Under Liquid
Schemes if transactions are time-stamped upto the cut-off time, NAV of the calendar day
prior to next business day would be applied for redemption cases.
REDEMPTION/SWITCH OUT FROM JM TAX GAINS FUND

i. Application for purchase/switch-in is received before the applicable cut-off time i.e.
3.00 p.m.

Redemption/Switch-out option under JM Tax Gains Fund will be available only after
completion of lock-in period as per ELSS guidelines i.e 3 years.

ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of the respective schemes before
the cut-off time.

Units held in demat form (applicable for all schemes):

iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective scheme.
In terms of SEBI Circular dated September 13, 2012 and AMFI Best Practice Guidelines dated
February 18, 2013, all transactions, as per the conditions given below, will be aggregated
and closing NAV of the day on which funds are available for utilization will be applied,
provided the aggregated amount of the investment is Rs. 2 lacs and above.

Investors who hold units in demat form and wish to redeem their units, then redemption
procedure has to be followed. For details on the procedure, kindly refer SID.
Redemption/switch out requests from the Merging Schemes:
The following schemes of the Mutual Fund were merged:
Sr. no.

Marging Schemes

Merged Schemes

JM HI FI Fund and JM Agri and Infra Fund

JM Basic Fund

JM Mid Cap Fund, JM Small & Midcap Fund


and JM Contra Fund

JM Multi Strategy Fund

JM Financial Services Sector Fund, JM Telecom


Sector Fund and JM Large Cap Fund

JM Equity Fund

JM Nifty Plus Fund

JM Equity Fund

JM Emerging Leaders Fund

JM Multi Strategy Fund

a. All transactions are received on the same business day (as per cut off timing and time
stamping rules). Transactions received after the cut-off timing will be deemed to have
been received on the next business day and aggregated accordingly.
b. Aggregation of transactions shall be applicable for all open ended non liquid schemes
of the Mutual Fund.
c. Transactions shall include purchases, additional purchases, but will exclude Switches,
Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) transactions.
d. Aggregations will be done on the basis of investor/s PAN. In case of joint holding,
transactions with similar holding structures will be aggregated, similar to the principle
applied for compilation of Consolidated Account Statement (CAS).
e. All transactions will be aggregated where investor holding pattern is same as stated
above, irrespective of whether the amount of the individual transaction is above or
below Rs 2 lacs.
f.

Only transactions in the same scheme (at portfolio level) will be clubbed. This will
include transactions at option level (Dividend, Growth and Direct).

g. Transactions in the name of minor received through guardian will not be aggregated
with the transaction in the name of same guardian.
However, in respect of valid applications with outstation cheques/ demand drafts not
payable at par at the place where the application is received, closing NAV of the business
day on which cheque/demand draft is credited shall be applicable.
In terms of SEBI Circular dated September 13, 2012 and AMFI Best Practice Guidelines dated
February 18, 2013, all transactions, as per the conditions given below, will be aggregated
and closing NAV of the day on which funds are available for utilization will be applied,
provided the aggregated amount of the investment is Rs. 2 lacs and above.
a. All transactions are received on the same business day (as per cut off timing and time
stamping rules). Transactions received after the cut-off timing will be deemed to have
been received on the next business day and aggregated accordingly.
b. Aggregation of transactions shall be applicable for all open ended non liquid schemes
of the Mutual Fund.
c. Transactions shall include purchases, additional purchases, but will exclude Switches,
Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) transactions.

In case of any request for redemption/switch-out from the above Merging Scheme/s of
the Mutual Fund, the AMC may at its discretion process the same from the respective
Surviving Scheme/s at the applicable NAV of the respective Surviving Scheme/s on the
date of receipt of valid redemption/ switch-out request.
Eg: In case, the transaction slip reflects redemption/switch out from JM Agri and Infra
Fund (Merging Scheme), then such request shall be processed from JM Basic Fund
(Surviving Scheme). The AMC will be discharged of its obligations on processing of
requests as stated above.
B. Debt/ LIQUID Schemes
For subscription (purchase)/switch-in:
1. Liquid Schemes - JM High Liquidity Fund and JM Floater Short Term Fund:
i.

where the application is received upto 2.00 p.m. on a day and funds are available for
utilization before the cutoff time without availing any credit facility whether, intra-day
or otherwise, the applicable NAV shall be the closing NAV of the day immediately
preceding the day of receipt of application;

ii. where the application is received after 2.00 p.m. on a day and funds are available
for utilization on the same day without availing any credit facility whether, intra-day
or otherwise, the applicable NAV shall be the closing NAV of the day immediately
preceding the next business day; and
iii. irrespective of the time of receipt of application, where the funds are not available for
utilization before the cutoff time, without availing any credit facility whether, intra-day
or otherwise, the applicable NAV shall be the closing NAV of the day immediately
preceding the day on which the funds are available for utilization.

d. Aggregations will be done on the basis of investor/s PAN. In case of joint holding,
transactions with similar holding structures will be aggregated, similar to the principle
applied for compilation of Consolidated Account Statement (CAS).

For allotment of units in respect of purchase of/switch in to JM High Liquidity Fund and
JM Floater Short Term Fund (liquid schemes), it shall be necessary that:

e. All transactions will be aggregated where investor holding pattern is same as stated
above, irrespective of whether the amount of the individual transaction is above or
below Rs 2 lacs.

ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of liquid schemes before the cut-off
time of 2 p.m.

f.

Only transactions in the same scheme (at portfolio level) will be clubbed. This will
include transactions at option level (Dividend, Growth and Direct).

iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective liquid schemes.

g. Transactions in the name of minor received through guardian will not be aggregated
with the transaction in the name of same guardian.

2. Debt Schemes - JM MIP Fund, JM Money Manager Fund, JM Floater Long Term Fund,
JM Short Term Fund, JM Income Fund and JM G-Sec Fund, in respect of purchase of
units for Rs. 2 lakh or more:

For redemption (sale)/ switch out:


At the applicable NAV subject to the deduction/ charge of exit loads as prescribed at the
time of respective investments.
(i) For Equity schemes
Redemption request can be submitted to the official point of acceptance on any business
day till 3.00 pm. In respect of valid applications received upto 3 p.m. by the Mutual Fund,
same days closing NAV shall be applicable. In respect of valid applications received after
3 p.m. by the Mutual Fund, the closing NAV of the next business day shall be applicable.
It is clarified that the cut off timings will also be applicable to investments made through
sweep mode.
Unit held in physical form:
The investors holding units in physical form may submit their redemption/ switch requests
duly signed by all the holders (as per the mode of holding) at any of the Investor Service
Centers (ISC) of Registrar & Transfer Agent viz., M/s Karvy Computershare Pvt. Ltd. or JM
Financial Asset Management. Ltd. latest by 3.00 p.m. on any business day. Such cases will be

i.

Application is received before the applicable cut-off time of 2 p.m.

In terms of SEBI Circular dated September 13, 2012 and AMFI Best Practice Guidelines dated
February 18, 2013, all transactions, as per the conditions given below, will be aggregated
and closing NAV of the day on which funds are available for utilization will be applied,
provided the aggregated amount of the investment is Rs. 2 lacs and above.
a. All transactions are received on the same business day (as per cut off timing and time
stamping rules). Transactions received after the cut-off timing will be deemed to have
been received on the next business day and aggregated accordingly.
b. Aggregation of transactions shall be applicable for all open ended non liquid schemes
of the Mutual Fund.
c. Transactions shall include purchases, additional purchases, but will exclude Switches,
Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) transactions.
d. Aggregations will be done on the basis of investor/s PAN. In case of joint holding,
transactions with similar holding structures will be aggregated, similar to the principle
applied for compilation of Consolidated Account Statement (CAS).

e. All transactions will be aggregated where investor holding pattern is same as stated
above, irrespective of whether the amount of the individual transaction is above or
below Rs 2 lacs.
f.

Only transactions in the same scheme (at portfolio level) will be clubbed. This will
include transactions at option level (Dividend, Growth and Direct).

g. Transactions in the name of minor received through guardian will not be aggregated
with the transaction in the name of same guardian.

For allotment of units in respect of purchase of/switch in to the aforementioned


schemes/ plans, it shall be necessary that:

i.

Application is received before the applicable cut-off time i.e. 3.00 p.m.

ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of the respective schemes before
the cut-off time.
iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective scheme
3. Debt Schemes - JM MIP Fund, JM Money Manager Fund, JM Floater Long Term Fund,
JM Short Term Fund, JM Income Fund and JM G-Sec Fund, in respect of purchase of
units for less than Rs. 2 lakh:
Where the application is received up to 3.00 pm with a local cheque or demand draft
payable at par at the place where it is received closing NAV of the day on which the
application is received;
Where the application is received after 3.00 pm with a local cheque or demand draft
payable at par at the place where it is received closing NAV of the next business day; and
Where the application is received with an outstation cheque or demand draft which is not
payable on par at the place where it is received closing NAV of day on which the cheque
or demand draft is credited.
The aforesaid provisions are applicable for prospective transactions and shall also apply
to existing as well as fresh SIP and STP transactions.
Effective October 1, 2012, under all Debt schemes (other than liquid schemes), in respect
of application for purchase/switch-in of units of an amount equal to or more than Rs. 2
lakhs, the closing NAV of the day on which the funds are available for utilisation shall be
applicable provided that
i. Application for purchase/switch-in is received before the applicable cut-off time i.e.
3.00 p.m.
ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of the respective schemes before
the cut-off time.

existing folio held by him, where the scheme name is clearly mentioned but the name
of the Plan/Option is not specified, the AMC may, at its discretion, allot units in the Plan/
Option where he had made investment in the past i.e. such Plan/Option of the scheme
will be treated as the default Plan/Option , in the absence of any specific written signed
instructions/clarificatory letter from the unit holder/s concerned, received on the date of
such investment. Such investments will also be subject to the load structure and lock-in
of the respective default Plan/Option.
In case, the investor has not mentioned the plans/ sub-plans etc or has incompletely/
illegibly mentioned the plans/sub-plans etc. in the purchase/redemption/switch request
(specifically where he is having holdings in various plans/sub-plans etc.) of the particular
scheme, the AMC will summarily reject such requests if the investor has not furnished any
clarification in writing, duly signed, on the date of transaction itself, during normal office
hours. However, in case of purchase, where there is a mismatch in the amount mentioned
in the Purchase Application form/Transaction Slip and the payment instrument/credit
received, the AMC may at its discretion allot units for the lesser of the two amounts and
refund/utilize excess, if any, for any other transaction submitted by the same investor
subject to the fulfillment of other regulatory requirements for the fresh transaction.
No request for redemption/switch out will be processed/effected unless the scheme from
which redemption/switch out is sought to be effected, has received the funds.
In case, the investor does not mention the name of the Plan/ Option/ Sub-option/or
wherever there is an ambiguity in choice of Plan/ Option/ Sub option opted for purchase/
switch application(s), the AMC/ Registrar may allot the units as per default Plans/ Options/
Sub-options, if no clarification letter is provided by the investor on the transaction date.
However, in case of purchase application, the AMC/ Registrar at its discretion may allot
the units based on the Plan/ Option/ Sub-option appearing on the respective payment
instrument.
In case, there is complete ambiguity regarding the default Plans/ Options/ Sub-options,
the application will be treated as invalid and will be summarily rejected.
In case, investor applies for dividend payout option, for the scheme which does not have
dividend payout option, the application will be processed under dividend reinvestment
option and investor will be allotted units accordingly.
Where units under a Scheme are held both in the Normal Plan(s) as well as the Surviving
Plan and in the event of the investor not clearly mentioning the name of the Scheme/Plan/
Option/ Sub-option/or wherever there is an ambiguity in choice of Scheme/Plan/Option/
Sub-option opted for in the request for redemption/switch-out of all/specified amount/
units, in the absence of clarificatory letter from the investor on the day of the transaction,
the AMC/Registrar reserves the right to process the redemption/switch out request from
the Normal Plan(s) or Surviving Plan if such redemption request can be processed in totality.
In such case, the redemption will first be effected from the Normal Plan(s).

Debt Schemes:

E.g. If an investor has investment of Rs. 5 lakh in an Normal Plan and Rs. 10 lakh in the
Surviving Plan and a redemption request is received from him for redemption of Rs. 2 lakh
without indicating which Plan the redemption is to be effected from, the AMC/ Registrar
will effect the redemption from the Normal Plan. In the same example, if the redemption
request was for Rs. 7 lakh, the redemption would be effected from the Surviving Plan.

Redemption/Switch-out request can be submitted to the official point of acceptance on


any business day till 3.00 pm. In respect of valid applications received up to 3 p.m. by the
Mutual Fund, same days closing NAV shall be applicable. In respect of valid applications
received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day shall
be applicable.

However, in case it is not possible to effect the redemption from any one of the Plans in
totality i.e. either from the Normal or from the Surviving Plans, such redemption request
will be treated as void ab initio and rejected.
E.g. If the redemption request in the above example is for Rs. 12 lakh, the AMC / Registrar
will summarily reject the redemption request.

Liquid Schemes:

Where units are held under any one i.e. under Normal or Surviving Plan, the redemption
will be processed from such Plan.

iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective scheme.
FOR REDEMPTION (SALE/ SWITCH OUT):

Redemption/Switch-out request can be submitted to the official point of acceptance on


any business day till 3.00 pm. In respect of valid applications received up to 3 p.m. by the
Mutual Fund, closing NAV of the day immediately preceding the next business days NAV
shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual
Fund, the closing NAV of the next business day shall be applicable.
Unit held in physical form:
The investors holding units in physical form may submit their redemption/ switch requests
duly signed by all the holders (as per the mode of holding) at any of the Investor Service
Centers (ISC) of Registrar & Transfer Agent viz., M/s Karvy Computershare Pvt. Ltd. or JM
Financial Asset Management Ltd. latest by 3.00 p.m. on any business day. Such cases will be
eligible for NAV of the business day on which the redemption requests are time-stamped
upto the cut-off time at the ISC for all schemes other than liquid schemes. NAV of the
calendar day prior to next business day would be applied for redemption cases under
Liquid Schemes if transactions are time-stamped upto the cut-off time.
Units held in demat form (applicable for all schemes):
Investors who hold units in demat form and wish to redeem their units, then redemption
procedure has to be followed. For details on the procedure, kindly refer SID.

The AMC may accept corrective letter from investor in case of any mistake on the part
of investor to put through the transaction if any such request is made on the date of
transaction.
Pursuant to Association of Mutual Funds in India (AMFI) Best Practice Guidelines Circular
No. 48/2014-15 dated June 24, 2014, the investors are hereby informed that in case of
fresh/additional purchases, if the name of a particular Scheme on the application form/
transaction slip differs from the name on the Cheque/Demand Draft (payment instrument),
then JM Financial Asset Management Limited (the AMC) shall process the application and
allot units at the applicable Net Asset Value of the scheme mentioned in the application
form/transaction slip duly signed by the investor, given that the same constitutes a valid
legal document between the investor and the AMC.
The AMC reserves the right to call for other additional documents as may be required, for
processing such transactions. The AMC also reserves the right to reject such transactions.
The AMC, thereafter, shall not be responsible for any loss suffered by the investor due to
the discrepancy in the scheme name mentioned in the application form/transaction slip
and Cheque/Demand Draft.

DEFAULT REDEMPTION/SWICH-OUT/PURCHASE/SWITCH-IN

In case of Direct Plan

In case, an Investor fails to mention the complete name of the scheme upto plan/ subplan level while making request for redemption/ switch-out, the AMC reserves the right
to redeem/ switch-out all/specified desired units/ value provided the investor is having
holdings only in one scheme/plan/option and the folio number is clearly mentioned or if
he maintains one folio. Otherwise, such incompletely filled requests would be summarily
rejected without processing.

(a) Liquid Scheme(s): Units shall be allotted for valid applications received before cut-off
time (subject to provisions on realization of funds) on any business day under Direct
Plan (the respective options) at the applicable Net Asset Value (NAV) of the Direct
Plan of the day prior to the next business day will be applicable.

In case, an existing unitholder of a scheme makes an additional investment in an

Applicability of NAV in case of liquid/ non-liquid schemes is as follows

(b) Non-Liquid Scheme(s): Units shall be allotted for valid applications received before
cut-off time (subject to provisions on realization of funds) on any business day under

Direct Plan (the respective options) at the applicable Net Asset Value (NAV) of the
Direct Plan of the same business day will be applicable.
Uniform process for processing of redemption/switch out for all the Schemes of
the Mutual Fund:
Pursuant to Association of Mutual Funds in India (AMFI) Best Practice Guidelines Circular
No.28/2012-13 dated May 15, 2012, unit holders shall note that application for redemption/
switch-out for units, for which funds are not realized via purchase or switch-in in the scheme
of the Mutual Fund, shall be liable to be rejected. In other words, redemption or switch
out of units will be processed only if the funds for such units are realized in the scheme,
by way of payment instructions/transfer or switch-in funding process.
Further, all switch funding shall be in line with redemption funding timelines adopted
by the concerned scheme i.e. if a scheme follows T+3 payout for redemption, the switch
out funding will also be made on T+3 and not earlier or later than T+3, where T is the day
of transaction.
Unitholders shall further note that the AMC at its sole discretion, may process redemption/
switch-out request partially, if funds for part of the units being redeemed/switched-out
are realised.
Redemption/switch out requests in the Bonus Options of Debt Schemes:
In case an investor holds units in both the Bonus sub-options i.e. Bonus Units and Principal
Units and in the event of the investor not clearly mentioning the name of the sub-option
or wherever there is an ambiguity in choice of sub-option opted for in the request for
redemption/switch-out and/or in the absence of clarificatory letter from the investor on
the day of the transaction, the AMC/ Registrar reserves the right to process the redemption/
switch out request from the Principal Units.
Redemption/Switch Provisions:
Investors are requested to note that in case of redemption/switch request, if the number
of units or the amount to be redeemed/switched out to any other Scheme of JM Financial
Mutual Fund, exceeds the number of outstanding units or value of outstanding units,
respectively, then JM Financial Asset Management Limited (the AMC) shall, at its
discretion, redeem/switch out all the outstanding units, if no clarificatory letter is received
from the respective investor on the date of the transaction.
SYSTEMATIC PLANS
SYSTEMATIC PLANS ARE AVAILABLE TO THE INVESTORS THROuGH Systematic
Investment Plan (SIP)/ Systematic Transfer Plan (STP) and Systematic Withdrawal Plan
(SWP)
The Terms and conditions of the Systematic Investment Plan (SIP)/ Systematic Transfer
Plan (STP) and Systematic Withdrawal Plan (SWP) being offered in terms of the Scheme
Information Document
All the terms and conditions (including the provisions of load structure & lock-in period)
applicable on the date of registration i.e. date of initial investment will also be applicable
for all future SIP/STP/SWP installments as well i.e. Registration concept except for Special
SIP where the terms and conditions (including load & lock-in period) applicable on the
date of first installment would be applicable for all future installments.
These facilities are available on the following days/dates
Facility

Daily

Weekly

Fortnightly

SIP

Not available

Not
available

Not
available

(Please use option


available in STP
facility as under)
STP

Available through
Chhota STP/Combo
SIP

1st , 8th,
15th, &
22nd

1st & 15th

SWP

Not Available

Not
available

Not
available

Monthly

Quarterly

1st, 5th ,

Ist of
month on
quarterly
basis

10th,
15th ,
20th , &
25th

An investor wishing to avail of the Systematic Investment Plan will have to mandatorily
abide by the following conditions in order to be treated as a valid SIP
Systematic Investment Plan (SIP ) Minimum no. of installments & Frequency
Frequency

Amount Per Installment


(Rs. in whole Numbers)

Minimum Mandatory
Installments*

Monthly

Rs. 500 to Rs. 999 per


month

12 or more out of which 10


installments must be effected

Monthly

Rs. 1000 or more per


month

6 or more out of which 5


installments must be effected

Quarterly

Rs. 3000 or more per


quarter

2 or more where atleast 1st 2


installments must be effected

* The above conditions are to be fulfilled in addition to other conditions for each SIP
cycle independently, failing which the respective SIP will be treated as invalid and will
be subject to refund/auto redemption/revertal & reprocessing etc as per the discretion
of the AMC. No two or more SIP cases will be clubbed to determine the fulfillment of
Minimum Investment Criteria

Perpetual SIP/STP/SWP
An investor who does not want to opt for any specific period, may opt for Perpetual SIP/
STP/SWP i.e. without mentioning any fixed period for his SIP/STP/SWP. Perpetual SIP/
STP/SWP can be cancelled/discontinued only on the written request of the investor or on
account of automatic discontinuation/cancellation in terms of provisions of the facility e.g.
failure of 5 continuous installments for a particular SIP date as set out above or sufficient
balance being unavailable in out-scheme in case of STP/SWP etc. AMC at its Discretion
may also treat the SIP as discontinued if the minimum number of SIP investments as per
the minimum Investment criteria are not completed within the stipulated time-frame and
may refund the amount after redeeming the outstanding units at current NAV.
Systematic Plans
SYSTEMATIC INVESTMENT PLAN (SIP)
SIP facility is available to investors in all the open ended of JM Financial Mutual Fund. This
facility is subject to changes from time to time.
Under this facility, by investing a fixed amount at regular interval, the Unitholders can take
advantage of the benefits of Rupee Cost Averaging, at the same time investing a fixed
amount regularly in a disciplined manner.
The Clause on Minimum Amount of subscription as specified in the Scheme Information
Document of the respective scheme/plan will not be applicable for investments made
through the first installment of Systematic Investment /Transfer Plan subject to the
fulfillment of minimum investment criteria and minimum installment criteria, during the
opted period through SIP/STP ( e.g.With atleast through 5 out of the first 6 installments
and 10 out of the first 12 installments in case of monthly SIP and minimum of first two
installments in case of quarterly SIP as the case may be) For example, the minimum
investment amount for 1st investment in JM Basic Fund is Rs.5,000/-. However, in case of
SIP, an investor can invest with minimum installment amount of Rs.1,000/-or Rs.500/- per
month so as to meet the Minimum Investment Amount over the opted period. i.e. 6/12
months respectively. The similar condition would apply to STP as well.
In case of a Regular SIP, the AMC will retain the initial investment made towards the 1st
SIP installment as normal investment if the same meets the minimum investment criteria
of the scheme concerned and will not refund even if it does not fulfill any of the criteria
stipulated for a valid SIP. However, the investor may redeem/ switch-out if he so wishes,
by submitting redemption/switch-out requests as per normal procedure.
In case, any of SIP/STP/SWP due dates fall on a Non-Business day, the NAV of the next
Business day will be applicable.
The features and other terms & conditions SIP are as under:
JM Financial Mutual Fund offers two types of Systematic Investment Plans i.e. Normal SIP
and Micro SIP on Monthly and Quarterly basis on any of the six SIP dates during any month
i.e. 1st, 5th, 10th, 15th, 20th or 25th.
I. Normal SIP: Under normal SIP, the investor is required to furnish copy of KYC
Acknowledgement & PAN Card in addition to other documents as mentioned
hereunder in subsequent points.
II. Micro SIP: Under Micro SIP, the investor is exempted to furnish the copy of PAN Card
provided his total contribution through Micro SIP (including all schemes/dates etc) does
not exceed Rs. 50,000/- during any financial year or on a rolling period of 12 months.
However, the investor is required to submit an attested copy of any of 13 identification
documents mentioned in the Key Information Memorandum. This facility is available
to individual investors including Minors & NRIs and Sole Proprietorship firms.. Other
categories including PIOs, HUFs, non-individuals etc are not eligible .. Micro SIP
investors have to be KYC compliant (through SEBI appointed KRA) and should attach
KYC form, proof of identity , address etc alongwith purchase application and cheque.
Please refer to para on KYC process.

The minimum investment criteria will not be applicable in case any Micro SIP
application is found to be invalid and the amount collected initially will remain in the
folio. However, redemption will be permitted for the same based on the request by
investor on the normal transaction slip.

Other terms and conditions of normal SIP remain unchanged and are applicable for
Micro SIP investors as well.

Investment under SIP (i.e. Normal SIP or Micro SIP) can be done through Regular SIP
or Special SIP

1. Regular SIP

In case of Regular SIP, the investor will have to attach a cheque/ Demand Draft towards
initial investment i.e. first installment. An investor can opt for Regular SIP and choose
Auto debit (ECS/Direct Debit/Standing Instructions or post dated cheques as the mode
of payments for subsequent installments.

2. Special SIP Facility


As an Investor-friendly measure and in order to simplify the procedure, an investor may


subscribe to SIP without even submitting the cheque/demand draft towards initial
investment i.e. first installment as is required under Regular SIP. The first installment will
also be debited through Auto Debit (through ECS/Direct Debit/ Standing Instructions)
process. While all other terms and conditions of Regular SIP will be applicable for
Special SIP as well except for the following changes:

i. No Cheque is required for initial investment i.e. first installment. Hence, it will work
like Zero balance account of any Bank.
ii. The allotment of units for first SIP installment will be made on the next opted SIP due

date out of the 6 SIP Dates (1st, 5th, 10th, 15th , 20th, 25th of every month) opted by
the investor , which would atleast be 30 days after the submission of valid application
form and other required documents, i.e. when his account will be debited for the first
time.
iii. The investment through Special SIP will be subject to the terms and conditions
(including loads etc) as are applicable to the Regular SIP on the Ist SIP due (debit) date
when his account will be debited for the first time and not as applicable on the date
of submission of valid SIP application with other required documents.
Modes of payment for SIP:
a. Auto Debit Facility:

To avail of the facility of Auto Debit (through ECS or Direct Debit or Standing
Instructions) for Regular SIP from the second SIP installment onwards and from 1st
installment for Special SIP, the applicant is required to give standing instructions
addressed to his bankers in the prescribed form to debit his bank accounts on the
opted due dates of SIP chosen by him and credit the installment amount to the Bank
Account of JM Financial Mutual Fund directly or through any of the service providers
appointed by the AMC. The contribution through Auto Debit Facility (through any of
the following modes) will start from Ist/IInd installment onwards in case of Special
& Regular SIP respectively as approx. 30 days time is required for registration of Auto
Debit Mandates with Investors Banks across India. For HDFC Bank Account Holders,
there is a separate Standing Instructions Form, which needs to be submitted instead
of normal Auto Debit Form.

i. Auto Debit (Through ECS Debit) Facility: It is available in RBIs all ECS locations (current
and future) and covers all banks participating in the respective ECS clearing locations.
ii. Auto Debit (Through Direct Debit) Facility: It is available with certain selected banks
with which the AMC has made arrangements. At present, AMC has a tie-up with 4
Banks i.e. ICICI Bank, IDBI Bank, Axis Bank and Standard Chartered Bank.

The Investors may contact the nearest ISC for current list of Banks accepting Direct Debit
mandates or for the list of cities where ECS facility is available. The list of cities/banks for
Auto Debit (through ECS/Direct Debit) may be modified/updated/changed/ removed
at any time in future, entirely at the discretion of JM Financial Asset Management Ltd
without assigning any reason. In case of removal of any city/bank from the current list,
the Auto SIP instructions for investors in such locations/banks will stand automatically
discontinued. JM Financial Asset Management Ltd., its Registrars and other service
providers will not be responsible, if the transaction is delayed or not effected or the
investors bank account is debited in advance or after the specific SIP date due to
various cycles of ECS/Clearing because of any reason.

2. A separate set of complete application form (including separate KYC/PAN/Cheque


etc) with required documents is required to be submitted for each SIP date (except
for Combo SIP)/Scheme/Plan/Option/Sub-Option . While the choice of multiple dates
through single Form is not permitted, the investor is free to choose all the six SIP dates
through single form . Any single application if received with multiple choices will be
summarily rejected and the amount of initial investment refunded without any interest,
if the amount of the same is less than the minimum investment limit fixed for particular
Scheme/Plan/Option/sub-option. In case, the amount invested is equivalent or more
than the amount required for meeting the minimum investment criteria, through 1st
installment, the same would be construed as a normal investment in the scheme and
shall be redeemed only on the basis of the redemption request made by the investor.
3. A Minimum of 30 days time is required for the next installment of SIP through
postdated cheques/Auto Debit (ECS/Direct Debit/ Standing Instructions) to take
place after the initial application for each set of separate SIP date (if opted for multiple
dates other than All SIP dates through single form).
4. Under Regular SIP, the first investment has to be made through physical cheque/DD
payable locally at the place of submission of the application. The first cheque/DD has
to be of any valid date and not a post dated one on the date of submission. However,
in case of remaining post-dated SIP cheques, from 2nd installment onwards, the
cheques must contain the opted SIP dates for the entire remaining period out of the
permissible SIP dates i.e. 1st, 5th, 10th, 15th, 20th or 25th of a month. Similarly, in case
of SIP through Auto Debit (Direct Debit/ECS/Standing Instructions), the investor should
choose any of the above mentioned six SIP dates. Likewise, the frequency of SIP (i.e.
Monthly/Quarterly) needs to be specified clearly, failing which Monthly frequency will
be taken as the default frequency.
5. The second SIP installment (except in case of Combo SIP ) of the same opted SIP due
date should not fall in the same calendar month.
6. In case, any particular SIP due date falls on a non-business day or falls during a book
closure period, the immediate next business day will be considered for the purpose
of NAV application accordingly irrespective of the date of debit into investors bank
account.

iii. Auto Debit (Through Standing Instructions) Facility For HDFC Bank Account Holders:

7. The applicable NAV for first investment through SIP under Liquid Funds shall be the
closing NAV of the day immediately preceding the day when the application is timestamped upto 2.00 p.m. on a business day and the funds are sighted into the schemes
bank account upto the cut-off time ( i.e. 2 p.m. ). In case of subsequent SIP installments,
the applications will be deemed to have been received before the cut-off time for
the purpose of SEBIs requirement on cut-off time. However, NAV for subsequent SIP
installments under Liquid Funds would be based on the time of receipt of funds into
schemes bank account before the cut-off time as per SEBI requirements.

In case of SIP under debt schemes in respect of purchase of units for Rs.. 2 lacs or more,
the cut off time of 3.00 pm will applicable for the purpose of time-stamping/ deemed
time-stamping and receipt of funds into schemes bank account.

For SIP installments in other than Liquid fund and installments for Rs. . 2 lacs or more
per installment in case of debt schemes, the application shall be considered to have
been received on the opted due date before the cut off time of the respective scheme
for the purpose of application of NAV.

This facility is available for those investors who maintain their Bank Account with any
branch of HDFC Bank in India. Such investors are required to fill up a separate Standing
Instructions Form meant for HDFC Bank Account holders only.

b. Post Dated Cheques:


An investor can subscribe to SIP facility in other than ECS locations/Direct Debit with
above mentioned Banks/ Standing Instructions facility of HDFC Bank by depositing
Post-dated cheques for the opted period if his bank participates in the local clearing
of the locations on which the cheques are drawn in any part of India where AMC has
made arrangements. However, the first cheque/demand draft should be drawn &
payable at the place where the application is being accepted. Presently this facility
is available in more than 400 locations across India in addition to locations covered
through ECS facility.
In the event of any merger/ acquisition/ closure of Banks, the investor will be required
to replace the remaining post dated cheques with the cheques drawn on any other
existing Bank.

The AMC shall accept only CTS 2010 cheques.


Daily (Chhotta) STP
In order to enable the investors to avail of the benefit of the daily volatility in the stock
markets, a Daily STP (Chhotta STP) facility is available to investors. An investor may opt
for Daily STP of Rs. 1 00/- or in multiples of any amount in full rupee terms, on every
Business Day against his other live investment made in lump sum or through getting
inflows through SIP.
Other terms and conditions with respect to SIP transactions:
Investors may choose any one of the following six SIP dates: 1st, 5th, 10th, 15th, 20th or
25th of the month subject to other Terms & Conditions.
Investor is required to make separate application for different opted dates except in case
of choosing All the six SIP due dates in one go or in case of Combo SIP.
1. The list of cities/banks for Auto Debit (through ECS/Direct Debit/Standing Instruction)
as mentioned above may be modified/updated/ changed/removed at any time
in future, entirely at the discretion of JM Financial Mutual Fund without assigning
any reason. Appropriate prior notice will be provided to the investors in case of any
such deletion in the list of cities/ banks. In case of removal of any city/bank from the
current list, the Auto SIP instructions for investors in such locations/ banks will stand
automatically discontinued. The AMC, its Registrars and other service providers will
not be responsible, if the transaction is delayed or not effected or the investors bank
account is debited in advance or after the specific SIP date due to various cycles of
ECS/Clearing, due to any reason.

8. The Investment cum SIP Enrolment Form complete in all respects may be submitted
at any of the ISCs (Investor Service Centers) of JM Financial Mutual Fund or Karvy
Computershare Pvt. Ltd. In case of SIP through Auto Debit (i.e. through Direct Debit
in selected banks or through ECS in selected cities or through Standing Instructions
for the HDFC Bank account holders), an additional form known as the SIP Auto Debit
Registration cum Mandate Form (through ECS/Direct Debit) and Standing Instruction
form in case of HDFC is also required to be submitted at the time of opting for SIP.
9. To subscribe to investment through SIP, an Investor has to submit the following
documents:
i. Scheme Application cum SIP Registration Form
ii. Auto Debit (through ECS/Direct Debit) Registration cum Mandate Form OR
iii. Auto Debit (through Standing Instructions) Mandate by HDFC Bank Account Holders
iv. Post-dated cheques for remaining period, drawn on any city in India in case of NonAuto Debit SIP
v. Copy of KYC acknowledgement issued by KRA, irrespective of amount of investment /
SIP instalment. For further details please refer the block in KIM on Prevention of Money
Laundering and KYC.
vi. Copy of PAN (exempted for micro SIP investors)
vii. A photo copy of the cheque/cancelled cheque from the same account where future
installments are to be debited if opted for SIP through Auto Debit (through ECS under
Regular & Special SIP) for MICR/IFSC code verification.
viii. Locally Payable Cheque/DD for Initial Investment cum 1st SIP Installment Amount
(NOT REQUIRED FOR SPECIAL SIP CASES) subject to the minimum amount/number
of installment as per above mentioned table for Regular SIP.
The investor should write the SIP Form/Folio number / the first applicants name on the
reverse of the cheque/s accompanying the SIP Form. No need to submit any payment
instrument towards initial investment/first installment in case of Special SIP
MICRO SYSTEMATIC INVESTMENT PLANS (MICRO SIPS)
(i) According to SEBIs letter dated June 19, 2009 to AMFI, investment in Micro Systematic

Investment Plans (Micro SIPs) up to Rs.50000/- per year per investor shall be exempted
from the requirement of PAN subject to other operational guidelines.
(ii) Any investment through Systematic Investment Plans (SIPs) by investors where
aggregate of installments in a rolling 12 months period or in a financial year i.e April
to March, which does not exceed Rs 50,000/- will be treated as Micro SIP for above
purpose. Micro SIP will be subject to common KYC process through KRA (e.g. M/s CVL
etc). This exemption will be applicable ONLY to investments by individuals (including
NRIs but not PIOs), Minors and Sole proprietary firms. HUFs and other categories will
not be eligible for Micro SIPs. The exemption is applicable to joint holders also.

Fund.
8.

Returned / Dis-honoured cheques/ECS/Direct Credit failures will not be presented


again for realization for reasons attributable to the investor/s.

9.

The investor/s agree/s to abide by the terms and conditions of ECS facility of Reserve
Bank of India (RBI) in case of SIP through ECS.

10. Please refer to para on Third Party Payment and Transaction charges elsewhere in
this Key Information Memorandum
Termination of SIP

(iii) In case of first Micro SIP Installment is processed (as the cheque may be banked), and
the application is found to be defective, the Micro SIP registration will cease for future
installments. No refund to be made for the units already allotted. However, redemptions
will be allowed based on the submission of normal prescribed Redemption Transaction
Slip.

In the event of not meeting any one or more of the above mentioned criteria, the SIP will
stand terminated and the investor will be required to make a fresh SIP application if he is
desirous of availing this facility in future also. The fresh application will be subject to the
current terms and conditions of the respective scheme/plan/option.

(iv) The Minimum Investment criteria and the minimum remaining balance criteria will
not be applicable in for Micro SIP investors.

i. For Electronic Clearing Services (ECS) cases :

(v) RTA back-office will reject a Micro SIP application where it is found that the registration
of the application will result in the aggregate of Micro SIP installments in a financial
year exceeding Rs 50,000 or where there are deficiencies in supporting documents.
(vi) Rejected application will be sent back to the investor with a deficiency memo.
Valid SIP application
An investor wishing to avail of the Systematic Investment Plan will have to mandatorily
abide by the following conditions in order to be treated as a valid SIP.
1.

Initial Investment Amount may not be equal to subsequent SIP Installments (Excluding
Special SIP), provided the Minimum Investment criteria of the scheme/plan is met
through the Initial Investment itself. However, all subsequent SIP Installments
must be of the same Amount. The load structure & lock-in conditions for the Initial
Investment & subsequent SIP will be as per the rates/terms applicable on the date of
Initial Investment i.e the Registration Date in case of Regular SIP and Ist installment
in case of Special SIP

2.

In the event of any of the installment amount being different, the AMC will treat
all SIP installments as normal investments and these will be subject to normal load
and other provision as applicable on the respective dates of investments. In order to
treat such installments as normal investments, the AMC reserves the right to revert
and reprocess all previous SIP installments besides discontinuation of SIP for future
installments or alternatively the AMC may recover the exemptions/benefits directly
from investor or by redeeming the equivalent units from the respective folio.

3.

In addition, the AMC will also charge exit load as applicable on the normal investment
based on the dates of respective SIP installments. In the event of non-fulfillment
of minimum subscription criteria due to non-fulfillment of the other conditions or
discontinuation of the SIP on the request by the investor, the AMC reserves the right
to redeem/refund with current valuation on the date of review by the AMC.
Investor is required to ensure that five consecutive SIP installments should not fail due
to the reasons attributable to him or his banker. However, in case of any rejection by
local clearing house/RBI citing reasons like Account closed or nonexistent account
or any such other similar reasons, the SIP for future period will be treated as cancelled/
discontinued after first such rejection itself, at the discretion of the AMC.

4.

In the event of non-receipt of funds for the first investment/Ist SIP installment itself
due to dishonour of the cheque, the SIP will automatically be treated as discontinued
ab initio and amount for subsequent installment will be refunded, if it is not possible
to convert the Regular SIP to Special SIP as per the provisions of the Special SIP.

5.

In order to be treated as a valid SIP application, minimum investment amount criteria


as per the Scheme Information Document of the respective scheme e.g Rs. 5,000/should be received by the AMC as per details mentioned in the above table during
the opted period.

6.

The Clause on Minimum Investment Criteria as specified in the Scheme Information


Document of the respective scheme/plan/option/sub-options will not be applicable
for investments made through the first/single installment of Systematic Investment
/Transfer Plan . For example, the minimum investment amount for investment in JM
Basic Fund is Rs.5,000/-. However, in case of investment through SIP/STP (Systematic
Investment/Transfer Plan), an investor can invest with minimum installment amount
of Rs.500/- or more per month or Rs. 3000/- or more per quarter so as to meet the
Minimum Investment Amount over the opted period.

In case of a Regular SIP, the AMC will retain the initial investment made towards the
1st SIP installment as normal investment if the same meets the minimum investment
criteria of the scheme concerned and will not refund even if it does not fulfill any of the
criteria stipulated for a valid SIP. However, the investor may redeem/ switch-out if he
so wishes, by submitting redemption/switch-out requests as per normal procedure.

In case, any of SIP/STP/SWP due dates fall on a Non-Business day, the NAV of the next
Business day will be applicable.

7.

The cheque/s should be drawn in favour of the scheme/plan chosen (e.g. JM Equity
Fund) and crossed A/C Payee Only and payable locally and drawn on any bank,
which is situated at and is a member of the Bankers Clearing House located at the
place where the SIP application is submitted. In case of outstation cheques, if accepted
by the AMC, the AMC shall credit the unit holders account with the number of units
at the applicable sale price on the day when clear funds are received by the Mutual

Discontinuation of Systematic Investment Plan (SIP):


For discontinuation of SIP through ECS debit, the cancellation/discontinuation request
signed by the unitholder/s should reach the AMC/Registrar at least 15 Calendar days prior
to the due date for next SIP installment, failing which the discontinuation request will be
considered from the subsequent SIP installment onwards.
ii. For Direct Debit cases / Standing Instruction of HDFC Bank cases :
For discontinuation of SIP through Direct debit/Standing Instructions of HDFC Bank, the
cancellation/discontinuation request signed by the unitholder/s should reach the AMC
/ Registrar at least 30 Calendar days prior to the due date of the next installment, failing
which the same will be considered from the subsequent SIP installment onwards. In
view of the time required by respective banks to complete the process of cancellation,
the units towards such SIP installments will continue to be allotted for the subsequent
two installments after the receipt of cancellation/ discontinuation request or until the
respective banks confirm having noted the cancellation of debit instructions, whichever
is earlier. Thereafter, the SIP will be automatically discontinued for allotment of units for
future instalments. Any credit received thereafter from the Bank towards the subsequent
installments will be kept in abeyance for refund to unitholders at the earliest, without any
interest/ accruals/benefits or without allotting the units .
iii. For Post Dated Cheques:
In case of physical post-dated cheques, the minimum notice period for cancellation /
discontinuation is 30 calendar days. However, the units will continue to be allotted till the
happening of earlier of the following:
a. till the cancellation is recorded and confirmed by the co-ordinating bank of the AMC
and the balance unpaid post-dated cheques are retrieved from the Bank, for return
to the unitholder; or
b. till 2 SIP installments, after the receipt of request for discontinuation/cancellation of
future SIP Installments.
Any amount received after the above will be refunded to the investor without any interest/
accruals/benefits or without allotting the units.
In the event of non fulfillment of the criteria specified for a valid SIP application, the AMC
reserves the right to revert all the previous allotments and re-allot the units afresh with
applicable loads (in case of applications for SIP transactions routed through a broker/
agent/distributor) as applicable on the respective due dates by treating them as normal
investments. In addition, the AMC may also recover the amount of load waived/exemptions
given for all allotments directly from the investor or by debit to his folios maintained with
JM Financial Mutual Fund. The revertal and reprocessing of units in the above case would
be subject to the investor meeting the minimum subscription amount (after deduction of
permissible DD charges). In case, an investor is unable to meet the minimum subscription
criteria due to non fulfillment of the other conditions or discontinuation of the SIP on
request by the investor, the AMC reserves the right to redeem/refund with current valuation
on the date of review by the AMC.
Corporate SIP : Systematic Investment Plan for Corporate Employees
Corporate employees may opt for the Systematic Investment Plan available to them.
In this case, the concerned employer is required to forward to the AMC the Scheme
application cum SIP registration mandate form of the corporate employee who desires
to invest in the Scheme. The application amount for the corporate employees would also
be forwarded by the employer on specific request from the concerned employee. The
concerned employee has to authorize the employer to deduct the application amount
from his salary and remit the same to the Fund at regular intervals to ensure receipt of
funds by the AMC on or before the next due date. Other terms and condition of respective
SIP and Schemes will be applicable.
Facility of re-registration under Systematic Investment Plan (SIP)
In terms of SEBI circular No. SEBI/IMD/CIR no. 4/ 168230/09 dated June 30, 2009, no
entry load is to be charged for investments into the schemes. Pursuant to the above, all
existing SIP investors of JM Financial Mutual Fund (the Fund) may if desired request for
re-registering their existing SIP for the remaining installments, without any entry load, by
making a request on a prescribed form containing the requisite undertaking. However,
the other existing terms and conditions (including broker code, exit load applicability for
respective installments etc. as prevailing at the time of original registration of the SIP, shall
remain unchanged for the re-registered SIP.
Conversion of Regular SIP to Special SIP: The AMC at its discretion may treat the

investment made under Regular SIP (ECS/Direct Debit/Standing Instructions) as having


been made under Special SIP if the Ist payment instrument bounces back as unpaid whereas
the payment for 2nd installment is received in the meantime. However, in such event , all
the provisions of Special SIP will be applicable including load structure, as applicable on
the date of Ist installment through Special SIP (i.e. 2nd installment through Regular SIP).
Accordingly, the AMC will re-register the period of subscription through Special SIP suitably.
Renewal/Continuation of existing SIP : In case, the existing SIP investor is willing to
continue/extend his/her/their existing SIP in the same plan of the same for further period
of 6 or more months, he/she/they may do by :
1.

Auto Debit (ECS/Direct Debit) : Submitting a fresh Auto Debit (ECS/Direct Debit ) Form
before the expiry of last SIP due date to avoid break in SIP period and render it to be
invalid (fresh Common Application Form is not required)

2.

Standing Instructions : In case of HDFC Bank Account Holder submitting a fresh


Standing Instructions Form with Common Application Form and cheque towards
first installment before the expiry of the last due date to avoid break in SIP period
and render it to be invalid

3.

Post Dated Cheque : Submitting the fresh set of PDCs with fresh signed Common
Application Form by filling fresh SIP details and change if any.

For Renewal/Continuation of SIP, the terms and conditions with regard to Lock- in period,
Load etc. as on the 1st Installment, after the expiry of the last installment of the Existing
SIP, will be applicable.

higher) applicable for the respective scheme/plan/option on the 1st opted STP/SWP date.
However, the investor is not required to maintain the same balance after processing the
1st STP/SWP installment. The last installment may be equivalent to or less than the opted
installment amount.
Systematic Transfer Plan (STP) - The minimum amount for transfer and available
dates for STP are as under :
Frequency

Daily @@

Amount per
installment$

Minimum 15
Calender days

If 50
installments
within 90 days
of start of Ist
STP could not
be effected

Weekly

Rs. 1000/-

1st , 8th, 15th,


22nd (after 22nd
the next date will
automatically be
the 1st of next
month)

Minimum 15
calendar days

If five
instalments
out of the first
six instalments
could not be
effected. *

Fortnightly

Rs. 1000/-

1st and 15th

As above

As above

Monthly

Rs. 1000/-

1st, 5th, 10th,


15th, 20th and
25th

As above

As above

Quarterly

Rs. 3000/-

1st Business
Day of the
next month
subject to the
minimum gap
of 15 calender
days from the
date of receipt of
STP request and
subsequently
after every
quarter from the
start month.

As above

If first two
installments
are not
effected *

(Chhotta STP /
Combo SIP

Combo SIP/Chhota STP

Out of Normal Investment: An investor against his existing or fresh lump sum
investment may opt for this facility through daily STP where a transfer of Rs. 1 00 or
any amount thereafter (in full rupee terms) on every Business Day will be effected by
the AMC/its Registrar automatically during the opted period or till the out-scheme/
plan/option is able to transfer funds , whichever is earlier made any of the Open-ended
Schemes/ Plans/ Options

b.

Out of SIP Investment : An investor may choose to avail of this facility against his
existing/fresh SIP Account in any of the open-ended schemes/plan/option where
transfer of Rs. 100/- or in multiples of any amount (in full rupee terms) through daily
STP would be effected per Business Day. Through this mechanism of regular inflow
& outflow, the investor may invest higher amount through SIP on any of the six SIP
dates and avail the benefit of daily volatility of market through daily STP with smaller
amounts for better risk-adjusted return.

The Investor is required to meet the minimum Investment amount of the Plan within 90
days of the Ist Chhotta STP/ Ist Combo SIP due date.
In case of non fulfillment of Minimum Investment Criteria of the Scheme/Plan under Daily
STP & Combo SIP facility within 90 days of the Ist Chhotta STP/Ist Combo SIP date, the AMC
may, at its discretion redeem the allotted units at current NAV and remit the proceeds any
time after the completion of specified period of 90 days, if not already redeemed by the
investor. In an out-going scheme folio, the Investor can also make investment through SIP
or through Additional investment to meet the minimum Investment criteria of the Scheme/
Plan concerned in order to avoid automatic redemption by the AMC.
Investors may choose any one of the six dates i.e.: 1st, 5th, 10th, 15th, 20th or 25th of
the month for their STP and SWP transactions. In case of Chhota STP, the choice of daily
option is automatic.
Under SWP, the Unit holders shall have an option to predetermine the withdrawal from
the scheme. SWP facility is available on 1st, 5th, 10th, 15th, 20th and 25th of the month
under monthly and 1st Business Day of the next month for quarterly SWP, subject to the
minimum gap of 15 calendar days to start SWP . Subsequent quarterly SWP will fall due
after completion of 3 months from the start date.
Under the SWP facility, investors may choose between
Fixed Amount Withdrawal (FAW):
Under this option the investor will have the facility to automate withdrawal of a fixed
amount from the scheme at Monthly / Quarterly intervals on the opted due date.
Capital Appreciation Withdrawal (CAW):
Under Capital Appreciation Withdrawal facility, the investors will have the option to indicate
automatic withdrawal of capital appreciation at varying time intervals over previous period,
on monthly or quarterly basis.
Example: Mr. X has invested Rs. 10,000 in the Scheme and instructs the AMC for CAW
withdrawal on monthly basis. If his investment turns to be Rs. 10,100 at the end of first
month the appreciated Rs. 100 would be automatically withdrawn from the Scheme.
In order to start the STP/SWP, the investor must have a minimum investment of Rs.
5,000/- or above or as per the minimum investment subscription amount (whichever is

Revertal and
Reprocess
with load or
recovery of load
if following
conditions are
not met@

60

These facilities have been explained in detail below.

a.

Minimum
period required
to start 1st STP/
extend the STP
after receiving
the request

Any day subject


to the time
required to
complete the
registration
process

Systematic Transfer Plan (STP) / Systematic Withdrawal Plan (SWP)

Under Combo SIP investors may Daily Transfer Rs. 1 00/- or in multiples of any amount in
full rupee terms to an Opted Scheme, per Business Day, as under.

Minimum
mandatory
installments
(equal amount)

Rs. 100

The AMC shall accept only CTS 2010 cheques.

STP provides for transfer of specified amount from one scheme/plan/option in which
the original investment is made to any other scheme/plan/option of JM Financial Mutual
Fund, at the end of specified periodic interval viz., either daily, weekly, fortnightly, monthly
or quarterly.

Starting date
during any
month

$ Further, in multiples of Re 1/- after the above minimum limit fixed for each STP installment
as per the frequency opted or as per the features of respective schemes eg. under JM Tax
Gain Fund , the minimum investment is Rs. 500/- and further in multiples of Rs. 500/- each.
@@ Not permitted under JM Tax Gain Fund being subject to ELSS guidelines.
@ In case 5 out of the first 6 installments in monthly / weekly / fortnightly and first two in
case of quarterly option are effected, the STPs will be treated as valid and there will be
no revertal and reprocess with recovery of load.
* Or In the event of failure of two consecutive STP installments, the STP request will stand
terminated and the investor will have to make a fresh application for availing of this facility
subject to the current term & conditions applicable for fresh STP cases. This condition
will, however, not be applicable in case of CAW where the condition of minimum STP
instalments could not be met due to the capital appreciation amount being less than Rs.
100 in case of monthly option and Rs. 300 in case of quarterly option.
An investor will have to opt for minimum 6 installments or in multiples of 6 installments i.e
6,12,18,24,30 installments respectively for his STP requests in case of weekly/ fortnightly/
monthly plan and for minimum of 2 installments or in multiples of 2 installments in case
he opts for the quarterly plan
It is clarified that these 6 installments pertain to a given application for a specified opted
date, for a specific option/ sub-option Separate application is required for each option/
sub-option for respective due date(s).
In case, it is not possible for the AMC/Registrar to start the STP/SWP from the opted
start date due to the insufficiency of time given by the investor , the AMC/Registrar will
automatically process the first STP/SWP on the opted date from the next cycle/month
after the opted starting cycle/month e.g. In case investor applies for STP/SWP on 1 8th
Jan 2012 for effecting Ist STP/SWP from 1 st February, 2012, AMC/Registrar may process
the same from 1 st of March, 2012 in case of monthly option. In such a case, the ending
period will be extended automatically by another month.
Minimum amount for withdrawal under SWP is fixed as under :
a. Fixed Amount Withdrawal (FAW) : Rs.1,000/- per month or Rs.3,000/- per quarter and
further in multiples of Re.1/- thereafter.
b. Capital Appreciation Withdrawal(CAW) Entire Capital Appreciation over the previous
due date to current due date subject to a minimum of Rs. 100 under monthly option
and Rs. 300/- under quarterly option

In case, the opted STP/SWP day falls on a non-business day, the next business day shall be
deemed to be the transaction day for that month or quarter as the case may be.
Each installment under STP/SWP cannot exceed the live investment amount on the
registration date of STP/SWP divided by the number of installment chosen subject to the
fulfillment of minimum STP/SWP criteria for respective frequency. In case of multiple STP/
SWP dates, the total number of installments for all opted dates will be taken into account
while fixing up the maximum installment amount.
Investments through systematic routes in case of Direct Plan:
(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) etc.
registered prior to the Effective Date without any distributor code under the Normal
Plan, installments falling on or after the Effective Date will automatically be processed
under the Direct Plan only.
(b) Investors who had registered for SIP facility prior to the Effective Date with distributor
code shall continue under the Normal Plan. However if the investor wishes that their
future installments be invested into the Direct Plan, he shall make a written request to
the Mutual Fund in this behalf. The Mutual Fund will take at least 15 Business days to
process such requests. Intervening installments will continue in the Normal Plan.
In case of (a) and (b) above, the terms and conditions of the existing registered
enrolment such as tenure , amount of the SIP etc. shall continue to apply.
(c) In case of Systematic Transfer Facilities which were registered with a Distributor Code
under the Normal Plan prior to the Effective Date, the future installments under the
said Facilities shall continue as under the Normal Plan.
In case such investors wish to invest under the Direct Plan through these facilities, they
would have to cancel their existing enrolments and register afresh for such facilities.
Discontinuation/Termination of STP/SWP
For discontinuation of STP/ SWP, the unitholder is required to intimate the AMC/ Registrar
at least 15 Calendar Days prior to the next installment for the respective due date. On such
request, STP/ SWP will be terminated and the transfer/ withdrawal instructions given by
the investor will be treated as cancelled.
Further, in case of non-fulfilment of any other terms and conditions, the STP/SWP will be
treated as cancelled/discontinued/terminated as per the discretion of the AMC.
In case of specific request received from investors, the Fund/Registrar will provide the
account statement to the investors within 5 business days from the receipt of such request
without any charges. Further, soft copy of the account statement shall be mailed to the
investors under SIP/STP/SWP to their e-mail address on a monthly basis, if email id is
furnished in the folio concerned.
An investor cannot simultaneously participate in an SIP and SWP in the same scheme. This
facility is also not available for investments under lock-in or encumbrances. All withdrawals
under SWP including FAW & CAW options shall be considered as redemption with no further
specific request or documentation requiring to be submitted by the unit holders. On the
respective date of processing the SWP request, a revised account statement showing the
amount withdrawn under SWP together with balance units (post accounting the SWP) in
their account shall be mailed to the unit holders.
All operational instructions of SWP including FAW & CAW options shall be in Rupees and
not in Units.
In case, the outstanding balance in out-scheme/plan/option falls below the prescribed
minimum balance (based on applicable NAV) due to redemptions or SWP, the AMC reserves
the right to discontinue the SWP facility and / or close an investors account if the investor
fails to invest sufficient funds to bring the value of the account to the prescribed minimum
(based on applicable NAV) after a written intimation in this regard is sent to the Unit holder.
In case of SIP/ STP transactions, the minimum number of mandatory installments pertain
to a given application for a specified opted date/ specific option/ specific sub-option.
Separate application is required for each option/ sub-option for respective due date(s).
In the event of not meeting any one or more of the above mentioned criteria, the STP/
SWP will stand terminated and the investor will be required to make a fresh application
if he is desirous of availing this facility in future also. The fresh application will be subject
to the current terms and conditions of the respective scheme/plan/option on the date
of fresh registration.
All applicants are deemed to have accepted the terms and conditions upon submitting
the valid application form with other requisites for investment under Systematic Plans.

other Scheme and accordingly, to be effective, the switch must comply with the redemption
rules of the Scheme and the issue rules of the other scheme (for e.g. as to the minimum
number of Units that may be redeemed or issued, applicable load, etc). The price at which
the Units will be switched out of the Scheme/Plan/Option will be based on the Repurchase
Price, and the proceeds will be invested in the opted Plan/ Option of the target Scheme at
the prevailing terms and sale price for units in that scheme/plan/option. The switch - out
from one scheme to another scheme (i.e. requiring change in portfolio) will be effective
only after the switch - out scheme has received the funds in the in-scheme. Accordingly,
the applicability of NAV will be dependant on the SEBI guidelines.
Investors will not have to bear exit load for inter and intra equity switches except in case
of (i) switches by SIP/STP investors within 24 months (for cases registered from 4.1.2008
up to 2.10.2008) and with in 12 months (for cases registered upto 3.1.2008) of respective
SIP/STP installments (ii) switches by STP investors (for cases registered from 3.10.2008)
within 24 months of respective STP installments (iii) switches by SIP investors (for cases
registered from 3.10.2008) within 12 months of respective SIP installments (iv) switches
to/from JM Arbitrage Advantage Fund to any equity schemes.
Subject to necessary approvals (if any) from the Regulatory authorities and any other
approval as applicable, tax deduction at source, if any, will be effected at the appropriate
rate in case of a switching by NRIs/FIIs and the balance amount would be utilized to
exchange units to the other Scheme.
All cheques and bank drafts accompanying the application form should contain the
application form number on its reverse.
Identification of Beneficial Ownership:
In terms of SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating
the Financing of Terrorism (CFT) dated December 31, 2010 and guidelines issued by
SEBI from time to time, all the registered intermediaries are required to undertake Client
Due Diligence (CDD) measures wherein intermediaries are required to obtain sufficient
information from their clients in order to identify and verify the identity of the persons
who beneficially own or control the securities account.
In terms of the said SEBI Master Circular, beneficial owner is the natural person or persons
who ultimately own, control or influence a client and/or persons on whose behalf a
transaction is being conducted. It also incorporates those persons who exercise ultimate
effective control over a legal person or arrangement. Also, the Prevention of Money
Laundering Rules, 2005 (PMLR 2005) requires each intermediary to identify the beneficial
owner and take all reasonable steps to verify his/her identity.
In compliance with the aforesaid regulatory requirements, the following CDD shall be
applicable to all the investors of the schemes of JM Financial Mutual Fund (the Mutual
Fund):
1. Applicability:
a. Details of beneficial ownership will have to be provided by all the categories of
investors except the following:

1. Individuals

2. Company listed on a stock exchange

3. Majority owned subsidiary of the aforesaid company.

b. Information about the Beneficial Owner shall be provided by the investors to


JM Financial Asset Management Limited (the AMC)/its Registrar i.e. M/s. Karvy
Computershare Private Limited.
c. Proof of Identity of the Beneficial Owner such as Name/s, Address & PAN/Passport
together with self attested copy* are required to be submitted to the AMC/its Registrar.

(*Original to be shown for verification and immediate return)

d. In case of any change in the beneficial ownership, the investor is required to


immediately intimate the AMC/its Registrar/KRA, as may be applicable, about such
changes.
2. Identification Process:

As provided by SEBI in its Circular No. CIR/MIRSD/2/2013 dated January 24, 2013, the
following process shall be adopted by the Mutual Fund:

a) For investors other than Individuals or Trusts:


1.

For the aforesaid clause, Controlling ownership interest means ownership of/
entitlement of:

Switching Options (In case of JM Tax Gain Fund this option will be available only after
completion of lock-in period)

a. More than 25% of shares or capital or profits of the juridical person, where the
juridical person is a company;

Unitholders under the Scheme have the option to switch part or all of their unit holdings
in the Scheme to another Scheme established by the Fund, or within the Scheme from one
Plan to another, which is available for investment at that time. This option will be useful
to Unitholders who wish to alter the allocation of their investment among the Scheme/
Plan(s)/Options of the Fund in order to meet their changed investment needs.

b. More than 15% of the capital or profits of the juridical person, where the juridical
person is a partnership; or

c. More than 15% of the property or capital or profits of the juridical person, where
the juridical person is an unincorporated association or body of individuals.

2. In case of doubt under clause (1) above as to whether the person with the
controlling ownership interest is the beneficial owner or where no natural person
exerts control through ownership interests; the identity of the natural person
exercising control over the juridical person through voting rights, agreement,
arrangements or in any other manner shall be the beneficial owner.

The AMC reserves the right to change the terms of this facility from time to time.
Default Option for all SIP/STP-out/SWP
In case, the Investor fails to mention the start date or end date under the SIP/STP-out/SWP,
the first of the subsequent month , after completing 30 days from the date of registration,
will be considered as the default SIP/STP-out/SWP date and the same would be treated to
have been opted on perpetual basis.

The switch will be effected by way of a redemption of Units from the Scheme/Plan/Option
and a reinvestment of the redemption proceeds in the opted Scheme/Plan/Option of the

In the case of Company, Partnership or unincorporated association/body of


individuals, the beneficial owners are the natural person/s, who, whether acting
alone or together, or through one or more judicial person, exercises control
through ownership or who ultimately has a controlling ownership interest.

3. Where no natural person is identified under clauses (1) and (2) above, the natural
person who holds the position of senior managing official shall be considered
as the beneficial owner.

b) For investor which is a Trust:


In case of a Trust, the intermediary shall identify the beneficial owners of the investor
and take reasonable measures to verify the identity of such persons, through the
identity of the Settlor of the trust, the trustee, the protector, the beneficiaries with
15% or more interest in the trust and any other natural person exercising ultimate
effective control over the trust through a chain of control or ownership.

c) For Foreign investors:


The intermediaries dealing with foreign investors viz., Foreign Institutional Investors,
Sub Accounts and Qualified Foreign Investors shall adopt the Know Your Client (KYC)
requirements specified by SEBI in its SEBI Circular No. CIR/MIRSD/11/2012 dated
September 5, 2012, which are as follows:
Relevant requirements on KYC Form
as per SEBI Circulars dated August 22,
2011 and October 5, 2011

Clarifications for Foreign Investors viz.


FIIs, Sub Accounts and QFIs

Copy of latest share holding pattern


including list of all those holding
control, either directly or indirectly,
in the company in terms of SEBI
Takeover Regulations, duly certified
by the Company Secretary/Whole
Time Director/MD (to be submitted
every year). POI and POA of individual
promoters holding control - either
directly or indirectly.

List of beneficial owners with


shareholding or beneficial interest in
the client equal to or above 25% to be
obtained. If Global Custodian /Local
Custodian provides an undertaking to
submit these details, then intermediary
may take such undertaking only. Any
change in the list to be obtained based
on risk profile of the investor.

Name, residential address, photograph,


POI and POA of Partners/Trustees, Whole
Time Directors/two directors in charge of
day to day operations and individual promoters holding control - either directly or
indirectly.

A. Not required if Global Custodian /


Local Custodian gives an undertaking to
provide the following documents as and
when requested for by intermediary:
1) A resolution from the Board of
Directors and power of attorney granted
to its managers, officers or employees to
transact on its behalf; and
2) An officially valid document in respect
of managers, officers or employees
holding an attorney to transact on its
behalf.
B. If Global Custodian/Local Custodian
does not provide such undertaking as
stated in A above, intermediary shall take
required details from Foreign Investors.

Disclosure of Bank Mandate


All cheques and bank drafts accompanying the application form should contain the
application form number on its reverse. As per the directive issued by SEBI vide their letter
IIMARP/MF/CIR/07/826/98 dated April 15, 1998, and SEBI/IMD/CIR No. 6/4213/04 dated
March 1, 2004 it is mandatory for applicants to mention their bank account numbers
in their applications for purchase or redemption of Units. This is to prevent fraudulent
encashment of dividend/redemption / refund cheques.
The verification procedures for registration of bank mandates will henceforth be applicable
at the time of fresh subscription/new folio creation with the Mutual Fund i.e. in case
the fresh subscription cheque does not belong to the bank mandate mentioned in the
application form, the AMC shall seek the additional documents and follow the procedures
set out in addendum dated October 1, 2013, before registering the bank mandate in the
new folio.

the date when dividend is declared. The Fund does not guarantee or assure declaration or
payment of dividend. Although, the Trustee has the intention to declare dividend under
the dividend options, such declaration of dividend, if any, is subject to the Schemes
performance and the availability of distributable surplus in the Scheme at the time of
declaration of such dividend. Under the Growth option, the earnings will be retained and
reflected in the NAV and not distributed.
On payment of dividend and dividend distribution tax (if and as applicable), the NAV will
stand reduced by the amount of dividend and dividend tax paid.
No dividend under Dividend Plan shall be distributed in cash even for those unitholders
who have opted for payout where such dividend on a single payout is less than Rs. 100/-.
Consequently, such dividend (less than Rs. 100/-) shall be compulsorily re-invested except
in schemes where Dividend Reinvestment option is not available e.g. JM Tax Gain Fund.
Bonus Policy:
i)

Under Bonus Option, the bonus units may be declared at the discretion of the Trustees,
from time to time based on the availability of distributable surplus, on the record date.

ii) Bonus units will be issued by capitalizing net distributable surplus and the amount
standing to the credit of the distributable reserves of the Bonus Option of the Scheme,
as on the said record date.
In terms of SEBI Circular dated March 18, 2008, Bonus units shall not be subject to entry
and exit load.
Investors are advised to consult their tax advisor to understand the tax implications for
subscribing/redeeming in the units of Bonus Option of the aforesaid Schemes.
Annual Bonus Option
Bonus units will be issued by capitalizing net distributable surplus and the amount standing
to the credit of the distributable reserves of the Annual Bonus Option of the Scheme, as
on the said record date.
However, the Schemes do not assure any targeted annual return/income nor any
capitalization ratio.
The actual declaration of Bonus and ratio of Bonus Units and frequency thereof will,
inter-alia, depend on availability of amount to the credit of reserves and /or availability
of distributable surplus, calculated in accordance with SEBI (Mutual Funds) Regulations,
1996 and will be at the sole discretion of Trustees and the decision of Trustees shall be
final in this regard.
Exchange Platforms:
As per the normal practice, if in the sub - option of Dividend payout, the dividend amount
is less than Rs. 100, then the dividend is compulsorily re-invested. Investors are hereby
informed that under this facility, dividend shall not be reinvested but will be paid out to
the respective investors.
Restriction on Acceptance of Third Party Payments
Any application accompanied with third party payment for subscription to units of
Scheme(s) is liable for rejection without any recourse to the applicant or investor.
It is clarified that Third Party Payment would mean a payment is from a bank account other
than that of the beneficiary investor. In case of payments received from a bank account
which is jointly held, the first holder of the mutual fund subscription has to be one of the
joint holders of the bank account, from which such payment is made.
Exceptions to Third Party Payments
Subject to the submission of requisite documentation and declarations, the following
third party payments will be accepted by the AMC / Mutual Fund.

Payment by Parents/Grand-Parents/related persons on behalf of a minor in


consideration of natural love and affection or as gift for a value not exceeding
Rs.50,000/- (each regular purchase or per SIP instalment). However this restriction
will not be applicable for payment made by a guardian whose name is registered in
the records of Mutual Fund in that folio.

Refusal to accept fresh purchases

In case, it is observed that there are consecutive instances of cheque dishonour by the
same unitholder/ investor due to the reasons attributable to such unitholder/ investor,
the AMC reserves the right, not to accept fresh purchase application(s) from such unit
holder/ investor in the future.

Payment by Employer on behalf of employee under Systematic Investment Plans or


lump sum / one-time subscription, through Payroll deductions. Asset management
companies should exercise extra due diligence in terms of ensuring the authenticity
of such arrangements from a fraud prevention and KYC perspective.

Custodian on behalf of an FII or a Client.

DESPATCH OF REPURCHASE OR DIVIDEND PROCEEDS:


The redemption or repurchase proceeds shall be dispatched/remitted to the unit holders
within 10 business days from the date of redemption or repurchase.
The dividend warrants shall be dispatched/remitted to the unit holders within 30 days of
the date of declaration of the dividend.The Asset Management Company shall be liable
to pay interest to the unitholders at such rate as may be specified by SEBI for the period
of delay (presently @ 15% per annum).
DIVIDEND POLICY
DIVIDENDS SHALL BE DECLARED AT THE DISCRETION OF THE TRUSTEE SUBJECT TO
AVAILABILITY OF DISTRIBUTABLE SURPLUS.
Dividends if declared will be paid to the Unit holders appearing in the Register of Unit
holder on the Record Date. In case the Record Date falls on a non Business Day, the
immediately following Business Day shall be the Record Date.
An investor of record for the purpose of dividend is an investor who is a Unitholder as of

Investments made through the exceptional cases mentioned above, are required to
comply with the following.
a) Mandatory KYC Acknowledgement Letter of the Investor as well as of the person
making the payment i.e. the third party should accompany the application form.
b) Declaration from the Investor and the person making the payment i.e. the third
party, giving the details of the bank account from which the payment is made and
the relationship with the beneficiary.
Important Note: The declarations mentioned above should accompany each purchase
application.
In order to enable verification of the source of funds the investors are required to ensure
the following requirements while subscribing to the units of the Schemes of the Mutual
Fund:
a)

At the time of his / her / their purchase, investors to provide the details of his / her /
their pay-in bank account (i.e. account from which a subscription payment is made)

and his / her / their pay-out bank account (i.e. account into which redemption /
dividend proceeds are to be paid).
b) In case, an investor has multiple accounts, the investor to register them with the AMC
in accordance with the procedure set out in para II below.
c)

The investor to submit any one of the following documents to establish that the
payment is made from the bank account of the first unit holder:

i.

Cancelled cheque leaf depicting name of the first unit holder or

ii.

In case, name of the first holder / applicants is not printed on payment cheque,
a cancelled cheque and copy of Bank Pass Book / Bank Statement or

iii. A Certificate, in original, on letter head from the banker certifying that the investor
maintains a bank account with the bank and mentioning the details like bank
account number and branch address.

d) If the subscription is settled with pre-funded instruments such as Pay Order, Demand
Draft, Bankers cheque, etc., investors to provide a Certificate from the Issuing banker
stating the Account holders name and the Account number which has been debited
for issue of the pre-funded instrument. The bank account number mentioned in the
certificate must be the account which is registered with the Fund or the first named
applicant / investor should be one of the holders of the said bank account.

e)

f )

Note: A pre-funded instrument issued by the Bank against Cash shall not be accepted
by the AMC / Mutual Fund for investments of Rs. 50,000/- or more. This also should
be accompanied by a certificate from the banker giving name, address and PAN (if
available) of the person who has requested for the demand draft.
If payment is made by RTGS, NEFT, ECS, bank transfer, etc., investors should submit a
copy of the instruction to the bank stating the account number debited along with
the purchase application. An investor must attach a Certificate, in original, on letter
head from the banker certifying account holders name and account number which
has been debited for issue of the instruments. The bank account number mentioned
in the certificate must be the account which is registered with the Fund or the first
named applicant / investor should be one of the holders of the said bank account.
In case, the payment is made by online transfer of funds, the copy of transfer
confirmation, showing the details of date of payment, debit and credit accounts and
amount of transfer, is attached.

In case, the details and additional documents, where necessary, as mentioned above are
not submitted with each subscription application, the application will be deemed to be
through a Third Party payment and is liable to be rejected without any recourse to the
applicant / investor. In case, the funds are transferred to the mutual fund prior to rejection
of the subscription, additional documents / details with respect to the investor and the
payment may be sought prior to initiating a refund.
SAFE MODE OF WRITING CHEQUE:
To avoid fraud and misuse of payment instruments, investors are advised to make the
payment instrument (cheque, demand draft, pay order, etc) favouring
XYZ Scheme A/c First Investor name or
XYZ Scheme A/c Permanent Account Number or
XYZ Scheme A/c Folio number.
Clarifications pertaining to Third Party Payments:
1) As an exception to the Third Party Payments, JM Financial Asset Management Limited
(The AMC) is open to accept payments made by the employer on behalf of the
employee, provided valid supporting documents are submitted.
2) If subscription to the units in one or more of the schemes of JMF MF is made by the
investor vide Demand Draft (DD), subject to the debit in his/her account, any one of
the following documents submitted will be considered as valid by JMF MF:
a) A Bank Managers Certificate will be considered as proof, provided the details of
Account Holders Name, Bank Account Number and PAN, as per bank records, is
provided.
b) An Acknowledgement from the bank specifying the debit details, bank account
details and name of the investor as an account holder.
c) A copy of the Passbook/Bank Statement for proof of debit transaction for the issue
of DD.
3) If subscription to the units in one or more schemes of JMF MF is made by the investor
vide DD, provided it is issued against cash, then a Bankers Certificate, mentioning the
details of the Issuance of DD along with the Investors Name, Bank Account Number
and PAN as per Bank records, if available, must be submitted. Provided in both the
above cases i.e. Point No. 2 and 3, the Bank Account Number of the investor must be
the same as the bank account mandate registered with JM Financial Mutual Fund or
the bank details mentioned in the application form.
REGISTRATION OF MULTIPLE BANK ACCOUNTS
To mitigate the risk related to simultaneous change of bank mandate and redemption
on multiple occasions, the Mutual Fund has introduced the facility to register Multiple
Bank Accounts. Individuals and HUFs can register up to five (5) bank accounts and non
individuals can register up to ten (10) bank accounts in a folio and is applicable for all
schemes in that folio.
Please contact the nearest Investor Service Centre (ISC) of the Mutual Fund/ the Registrar
of the Mutual Fund viz M/s Karvy Computershare Pvt. Ltd. or visit our website www.

jmfinancialmf.com for the Multiple Bank Accounts Registration Form (Registration Form).
For registration of multiple bank accounts, the investors can submit any one of the following
documents along with Part A of the registration form. In case, a copy of any document
has been submitted, investor should bring the original to the ISC of the Mutual Fund /
the Registrar for verification:
a. Cancelled cheque leaf, or
b. Bank Statement / Pass Book Page with account number, account holders name and
address.
The registered bank accounts mentioned above will be used to identify subscriptions
payments and any one of the registered bank accounts can be used towards redemption
or dividend payments. In case, any of the registered bank accounts is closed / altered,
instructions to delete / alter it should be intimated by using the designated form which can
be downloaded from our website mentioned above. Requests received on a plain paper
are liable to be rejected. The bank accounts will be registered or any subsequent addition
/ change / deletion in the registered bank accounts would be effected within a period
of 10 calendar days, subject to the documents being in order. The process of validation
would include notifying the investor about the request made for registration of new bank
account, through letter, email, sms, phone etc. as may be deemed appropriate. In case a
redemption request is received before the change of bank details have been validated and
registered, the redemption request would be the currently registered (old) bank account.
Registration of a Default Bank Account: Part B of the Registration Form may be used by the
unit holders to specify any one bank account out of the registered multiple bank accounts,
as the Default Bank Account, for the credit of redemption and dividend proceeds. The
Default Bank Account will be used for payments of redemption requests in case no other
registered bank account or a non-registered bank account is specified in the redemption
request for receiving redemption proceeds.
In case, the Default Bank Account is not specified, the Mutual Fund shall treat the following
as default bank accounts.
a.

In case of existing investors, the existing bank mandate, till the investor gives a
separate request to change the same to any of other registered bank accounts.

b.

In case of new investors, the bank account mentioned on the purchase application
form, used for opening the folio, till the investor gives a separate request to change
the same to any of other registered bank account.

Deletion of Registered Bank Accounts: Part C of the Registration Form can be used by the
investors to delete a registered bank account. Investor will not be allowed to delete a default
bank account unless he/she registers another registered account as a default account.
Kindly note that effective November 15, 2010, redemption payments will be sent only to a
bank account that is already registered and validated in the folio at the time of redemption
transaction processing.
Consequent to introduction of Multiple Bank Accounts Facility, the existing facility of
redemption requests accompanied with request for change of bank mandate will not be
processed simultaneously. The two requests will be handled and executed separately for
all existing and new customers, irrespective of customer category.
In case, the unit holder(s) provide a new and unregistered bank mandate with a redemption
request (with or without necessary supporting documents) such bank account will not be
considered for payment of redemption proceeds and redemption proceeds will be sent
to existing registered bank account only.
In case of registration of bank mandates, the verification procedures shall be applicable at
the time of fresh subscription/new folio creation with the Mutual Fund i.e. in case the fresh
subscription cheque does not belong to the bank mandate mentioned in the application
form, the AMC shall seek the additional documents and follow the procedures set out in our
addendum dated November 12, 2010, before registering the bank mandate in the new folio.
The verification procedures for registration of bank mandates will henceforth be applicable
at the time of fresh subscription/new folio creation with the Mutual Fund i.e. in case
the fresh subscription cheque does not belong to the bank mandate mentioned in the
application form, the AMC shall seek the additional documents and follow the procedures
set out in addendum dated October 1, 2013, before registering the bank mandate in the
new folio.
TAX & LEGAL INFORMATION
A. Taxation on investing in Mutual Funds
TAX BENEFITS
The following tax benefits are available to investors and the Fund under the present taxation
laws. The information set forth below is based on the advice of the Funds tax advisor and
is included for general information purposes only and therefore for all tax related matters,
investors should consult their own tax advisors. The information set forth below reflects
the law and practice as of date of this Offer Document. Investors/ Unit holders should be
aware that the relevant fiscal rules or their interpretation may change. There is a possibility
that the tax position prevailing at the time of an investment in the Scheme can change
thereafter. Mutual Fund will pay / deduct taxes as per tax law applicable on relevant date.
The investor will not have any recourse in case of additional tax liability imposed due to
changes in the tax structure in the future.
It may be noted that investors/ unit holders are responsible to pay their own taxes.
Investors/ unit holders should consult their own tax adviser with respect to the tax
applicable to them for participation in the scheme.
i. TAX BENEFITS TO THE MUTUAL FUND
JM Financial Mutual Fund is a Mutual Fund registered with the Securities and Exchange

Board of India and hence the entire income of the Fund will be exempt from income-tax
in accordance with the provisions of Section 10(23D) of the Income-tax Act, 1961 (the Act).
The Fund is entitled to receive all income without any deduction of tax at source under
the provisions of Section 196(iv), of the Act.
On income distribution, if any, made by the Fund, to its unit holders of a Debt Fund, income
distribution tax will be payable under Section 115R of the Act at the following rates:
At 25 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed to Individuals or a HUFs
by a Money Market Mutual Fund and a Liquid Fund.
At 30 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed to any other person by
a Money Market Mutual Fund and a Liquid Fund.
At 25 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed to individuals and HUFs
by a fund other than a money market mutual fund or a liquid fund.

At 5 percent on the income distributed from 1st June 2013 onwards by a mutual fund
to a non resident or to a foreign company under an infrastructure debt scheme.
At 30 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed by other funds to persons
other than individuals and HUFs, for instance, corporate.
An equity oriented fund is not required to pay any Income Distribution Tax u/s 115R of
the Act.
With effect from 1st October, 2014, as per the amendments made effective by the Finance
(No. 2) Act, 2014, the amount on which the above tax rates apply needs to be grossed up.
ii. TAX BENEFITS TO THE Unit holders
INCOME TAX: As per Section 10(35) of the Act, any income other than capital gain received
in respect of units of a mutual fund specified under Section 10(23D) will be exempt from
income-tax in the hands of the unit holders.
A. LONG TERM CAPITAL GAINS TAX ON TRANSFER OF UNITS OF OTHER THAN EQUITY
ORIENTED FUND:
Long-term capital gains on sale of units of Mutual Funds other than equity oriented funds
are not exempt from income tax under Section 10(38) of the Act in the hands of unit
holders. While computing the gains, in some cases, the benefit of indexation of cost of
acquisition is available. In some cases, the investor has the option to pay tax on indexed
gains or unindexed gains whichever is more beneficial. Further, Section 48 provides that
no deduction shall be allowed in respect of STT paid for the purpose of computing Capital
Gains. The provisions for taxation of long-term capital gains for different categories of
assessee are explained hereunder:

Category of Investor

Resident unit holders

Rate at which tax is payable


(see note 1 below)
20% (see note 2 and 3 below)

Whether
benefit of
indexation
of cost is
available?
Yes

Foreign Companies (including


20% (see note 4 below)
Qualified Foreign Investors)

No

Non-resident Indians (section


115 E)

20% (for unspecified asset)


10% (for specified asset)

No (see note 5
below)

Overseas Financial
Organisations (Section 11
5AB) and Foreign Institutional
Investors, Foreign Portfolio
Investors (1 15AD)

10%

No

Non-residents
20%
No
Notes:
1. In case of companies, if income exceeds Rs. 1 crore but does not exceed Rs 10 crores,
then the tax payable would be increased by a surcharge @ 7% in case of domestic
companies and @ 2% in case of foreign companies and if income exceeds Rs 10 crore
then surcharge @ 12% in case of domestic companies and @ 5% in case of foreign
companies would be applicable. In all cases, the tax payable (as increased by surcharge
in case of companies referred to above) would be further increased by Education Cess
(2%) and Secondary & Higher Education Cess (1%).
2. In the case of Individuals, where taxable income of the individual exceeds Rs 1 crore,
surcharge @ 12% would be applicable. The tax payable (as increased by surcharge
would be further increased by Education Cess (2%) and Secondary & Higher Education
Cess (1%). In the case of Partnership Firms where taxable income exceeds Rs 1 crore,
surcharge @ 12% would be applicable. The tax payable (as increased by surcharge
would be further increased by Education Cess (2%) and Secondary & Higher Education
Cess (1%).
3. In the case of Resident Individuals and HUFs, where taxable income as reduced by
long term capital gains is below the exemption limit, the long term capital gains will
be reduced to the extent of the shortfall and only the balance long term capital gains
will be charged at the flat rate of 20% and Education Cess and Secondary and Higher

Education Cess.
4. It may be possible for foreign companies to opt for computation of long term capital
gains as per Section 112, which provides for 10% tax on long term capital gains
computed without indexation of cost. However, this issue is not free from doubt as
there have been several judicial and appellate decisions where it has been held that
a non resident is not entitled to the benefit of paying tax at 10% on unindexed gains.
5. For non-resident Indians, under Section 115E of the Act, long-term capital gains
would be calculated without indexation of cost of acquisition. However, such units
should have been acquired or purchased with or subscribed to in convertible foreign
exchange. It may be possible for non-resident Indians to opt for computation of
long term capital gains as per Section 112, which provides for 10% tax on long term
capital gains computed without indexation of cost. In such case, the non-resident
Indian would have to forego all the benefits of concessional rate of tax available to
non-resident Indians under Chapter XII-A of the Act. However, this issue is not free
from doubt as there have been several judicial and appellate decisions where it has
been held that a non resident is not entitled to the benefit of paying tax at 10% on
unindexed gains.
6. With effect from 1st April, 2014, units held by all FIIs/QFIs/FPIs would be classified as
capital assets and accordingly, the gains/losses from the disposal of the said units
would constitute capital gains/loss in their hands. These investors would not be
considered to have business income as far as transactions in units are concerned.
Exemption from Long Term capital gain:
Under Section 54EC (1) of the Act, taxable capital gains, arising on transfer of a long term
capital asset, shall not be chargeable to tax to the extent such capital gains are invested
in notified bonds within six months from the date of the transfer of the said capital asset
subject to an upper limit of Rs. 50 lakhs whether the said investment is made in the same
year (of transfer) or the succeeding year..
Under Section 54F (1) of the Act , subject to the conditions specified therein, in the case of
an individual or a HUF, capital gains (subject to the exemption of long-term capital gains
provided for in section 10(38) of the Act, discussed elsewhere in this Statement) arising on
transfer of a long term capital asset (not being a residential house) are not chargeable to tax
if the entire net consideration received on such transfer is invested within the prescribed
period in one residential house in India. To avail this deduction, the investor should not
own more than one residential house in addition to the proposed new residential house for
which deduction is sought to be claimed. If part of such net consideration is invested within
the prescribed period in one residential house, then such gains would not be chargeable
to tax on a proportionate basis. For this purpose, net consideration means full value of the
consideration received or accruing as a result of the transfer of the capital asset as reduced
by any expenditure incurred wholly and exclusively in connection with such transfer.
B. SHORT TERM CAPITAL GAINS ON TRANSFER OF UNITS OF OTHER THAN EQUITY
ORIENTED FUND:
Short term capital gains in respect of units of non equity oriented mutual funds held for a
period of not more than 36 months is added to the total income of the tax payer.
Total income including short-term capital gains is chargeable to tax as per the relevant
slab rates for individuals. In the case of Individuals, where taxable income of the individual
exceeds Rs 1 crore, surcharge @ 12% would be applicable In case of Foreign Institutional
Investors, Qualified Foreign Investors, Foreign Portfolio Investors and domestic companies,
short term capital gain will be chargeable to tax at the flat rate of 30% plus applicable
surcharge and education cess and secondary and higher education cess. In case of foreign
companies, the tax rate would be 40%. In case of companies, if income exceeds Rs. 1 crore
but not more than Rs 10 crore, then the tax payable would be increased by a surcharge @
7% in case of domestic companies and @ 2% in case of foreign companies and if income
exceeds Rs 10 crore then surcharge @ 12% in case of domestic companies and @ 5% in
case of foreign companies would be applicable In all cases, the tax payable (as increased
by surcharge referred to above) would be further increased by Education Cess (2%) and
Secondary & Higher Education Cess (1%).
C. LONG TERM CAPITAL GAINS TAX ON TRANSFER OF UNITS OF EQUITY ORIENTED
FUNDS
Under Section 10(38) of the Act, long term capital gains arising on sale of units of equity
oriented funds are exempt from income tax in the hands of Unit holders, provided Securities
Transaction Tax (STT) is charged on such sale by the Mutual Fund.
D. LONG TERM CAPITAL GAINS TAX ON TRANSFER OF UNIT OF NON EQUITY
ORIENTED FUNDS
i. For Resident Individuals, HUFs and Indian Companies
Long-term Capital Gains in respect of units of non equity oriented Mutual Funds held
for a period of more than 36 months will be chargeable under section 112 of the Act at
the rate of 20% plus surcharge, as applicable and cess. Capital gains would be computed
after taking into account cost of acquisition as adjusted by Cost Inflation Index notified by
the Central Government and expenditure incurred wholly and exclusively in connection
with such transfer. In case of resident Individual or HUF, where taxable income as reduced
by long term capital gains is below the exemption limit, the long term capital gains will
be reduced to the extent of the shortfall and only the balance long term capital gains will
be charged at the flat rate of 20% plus surcharge, as may be applicable and cess..
ii. For Foreign Institutional Investors (FIIs), and Foreign Portfolio Investors (FPI)
fulfilling conditions laid down under section 115AD, Qualified Foreign Investors
(QFI), Overseas Financial Organisations covered by section 115AB
Under the provisions of section 115AD of the Act, income by way of long-term capital gains
in respect of securities (other than units referred to in section 115AB) will be chargeable

at the rate of 10% plus surcharge, as may be applicable and cess. Similarly, under section
115AB of the Act, income earned by way of long-term capital gains in respect of units
purchased in foreign currency held for a period of more than 12 months by Overseas
Financial Organisation will be chargeable to tax at the rate of 10%, plus applicable surcharge
and education cess and secondary and higher education cess. The capital gain for the
purpose of section 115AB and 115AD would be calculated without indexation of cost of
acquisition.Like other non resident investors, Overseas Financial Organisations, FIIs, QFIs
and FPIs are also eligible for claiming benefits under a Double Tax Avoidance Agreement
/ Treaty (DTAA) entered into by India with the country of which the concerned FII is a tax
resident. As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance
to a country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits
under the DTAA, the assessee would have to provide a certificate of his being resident
(commonly known as Tax Residency Certificate) from the government of the country in
which he is a resident. In addition to the said certificate, the concerned non resident is
also required to provide certain information in Form 10F such as status, nationality, Tax
Identification Number, period for which the assessee is a resident in the concerned country,
address and a declaration that the certificate of him being a resident is obtained. If any
information in Form 10F is already provided on the certificate of residency, the same need
not be provided again the form.
iii. For Non-Resident Indians
Under the provisions of section 115E of the Act for non-resident Indians, income by way
of long-term capital gains in respect of specified assets purchased in convertible foreign
exchange as defined under the provisions of section 115C of the Act (which includes shares,
debentures, deposits in an Indian Company and security issued by Central Government) is
chargeable at the rate of 10% plus cess. Such long-term capital gains would be calculated
without indexation of cost of acquisition. In such case, the non-resident Indian would
have to forego all the benefits of concessional rate of tax available to non-resident Indians
under Chapter XII-A of the Act. However, this issue is not free from doubt as there have
been several judicial and appellate decisions where it has been held that a non resident
is not entitled to the benefit of paying tax at 10% on unindexed gains. The exemption
under section 10(38) as stated above is also applicable in case of non-resident Indians.
iv. For other Non-Residents
In the case of a resident of a country with which a DTAA is in force, the tax should be
withheld as per provisions in the Act or as per the provisions in the DTAA whichever is
more beneficial to the non-resident investor. Under the provisions of section 112 of the
Act, long-term capital gains (other than those exempt as above and referred to below)
are subject to tax @ 20% (plus applicable surcharge and cess).
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a
country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits
under the DTAA, the assessee would have to provide a certificate of his being resident
(commonly known as Tax Residency Certificate) from the government of the country in
which he is a resident. In addition to the said certificate, the concerned non resident is
also required to provide certain information in Form 10F such as status, nationality, Tax
Identification Number, period for which the assessee is a resident in the concerned country,
address and a declaration that the certificate of him being a resident is obtained. If any
information in Form 10F is already provided on the certificate of residency, the same need
not be provided again in the form.
Long term capital gains arising on the transfer of a capital asset, being unlisted securities
will be subject to tax @ 10% (plus applicable surcharge and cess) without giving effect of
Indexation. Provided the securities are held for more than 36 months.
E. SHORT TERM CAPITAL GAINS ON TRANSFER OF UNITS OF EQUITY ORIENTED
FUNDS
Section 111A of the Act provides that short-term capital gains arising on sale of units
of equity oriented funds are chargeable to income taxat a concessional rate of 15%
plus applicable surcharge, education cess and secondary and higher education cess as
applicable, provided STT is charged on such sale by the Mutual Fund. In case of companies
if income exceeds Rs. 1 crore but does not exceed Rs 10 crores, then the tax
payable would be increased by a surcharge @ 7% in case of domestic companies and
@ 2% in case of foreign companies and if income exceeds Rs 10 crore then surcharge @
12% in case of domestic companies and @ 5% in case of foreign companies would be
applicable. In the case of Individuals, where taxable income of the individual exceeds Rs
1 crore, surcharge @ 12% would be applicable. In all cases, the tax payable (as increased
by surcharge would be further increased by Education Cess (2%) and Secondary & Higher
Education Cess (1%).
Further, Section 48 provides that no deduction shall be allowed in respect of STT paid for
the purpose of computing Capital Gains.
Short term capital gains not chargeable under the provisions of section 111A of the Act is
added to the total income. Total income including short-term capital gains is chargeable to
tax as per the relevant slab rates for resident or non resident individuals. In case of Indian
companies and FIIs/FPIs/QFIs, the rate of tax would be 30%. In case of a foreign company,
the rate of tax would be 40%.
F. CAPITAL LOSSES:
Losses under the head Capital Gains cannot be set off against income under any other
head. Further within the head Capital Gains, long term capital losses cannot be adjusted

against short term capital gains. However, short term capital losses can be adjusted against
long term capital gains. Long term capital loss arising on transfer of units of an equity
oriented fund on which STT is paid, cannot be set-off against any other capital gains.
Consequently, such loss shall lapse in the year in which it is incurred.
Unabsorbed long-term capital loss and short-term capital loss can be carried forward and
set off against the income under the head Capital Gains in subsequent eight assessment
years.
According to Section 94(7) of the Income Tax Act, if any person buys or acquires units
within a period of three months prior to the record date fixed for declaration of dividend
or distribution of income and sells or transfers the same within a period of nine months
from such record date, then losses arising from such sale to the extent of income received
or receivable on such units, which are exempt under the Income Tax Act, will be ignored
for the purpose of computing his income chargeable to tax.
Further, Section 94(8) provides that, where additional units have been issued to any person
without any payment, on the basis of existing units held by such person then the loss on
sale of original units shall be ignored for the purpose of computing income chargeable
to tax, if the original units were acquired within three months prior to the record date
fixed for receipt of additional units and sold within nine months from such record date.
However, the loss so ignored shall be considered as cost of acquisition of such additional
units held on the date of sale by such person.
TAX DEDUCTION AT SOURCE
FROM INCOME IN RESPECT OF UNITS:
As per the proviso to Section 196A(1) of the Act, no tax shall be deducted at source from
any income credited or paid to non-resident unitholders in respect of units of a mutual
fund specified under Section 10(23D) of the Act. Similarly as per the provisions of Section
194K of the Act, no tax should be withheld or deducted at source where any income is
credited or paid by a mutual fund to a resident unitholders.
FROM CAPITAL GAINS ON TRANSFER OF UNITS OF OTHER THAN EQUITY ORIENTED
FUND
(a) In respect of Resident Unit holders:
As per section 194K, no tax is required to be deducted at source on capital gains arising
to any resident Unit holder. In this connection, reference may also be made to circular no.
715 dated August 8, 1995 issued by the Central Board for Direct Taxes (CBDT).
(b) In respect of Non- Resident Unit holders:
As per the provisions of Section 195 r.w.s 196D(2) of the Act, tax is required to be deducted
at source from the redemption proceeds paid to investors. Under Section 195 of the Act,
tax shall be deducted at source in respect of capital gains as under:
Category of Investor

Rate at which tax is


deductible on short
term capital gains
(see note 1 below)

Rate at which tax is


deductible on long
term capital gains
(see note 1 below)

Foreign companies (including QFI)

40%

20%

FIIs, and FPIs

NIL

NIL

Overseas Financial Organisation

30%

10%

Other non-residents (including QFI)


30%
20%
Note:
In case of companies if income exceeds Rs. 1 crore but does not exceed Rs 10 crores, then
the tax payable would be increased by a surcharge @ 7% in case of domestic companies
and @ 2% in case of foreign companies and if income exceeds Rs 10 crore then surcharge
@ 12% in case of domestic companies and @ 5% in case of foreign companies would be
applicable. In the case of Individuals, where taxable income of the individual exceeds Rs
1 crore, surcharge @ 12% would be applicable. In all cases, the tax payable (as increased
by surcharge would be further increased by Education Cess (2%) and Secondary & Higher
Education Cess (1%).
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a
country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits under
the DTAA, the assessee would have to provide a certificate of his being resident (commonly
known as Tax Residency Certificate)from the government of the country in which he is
a resident. In addition to the said certificate, the concerned non resident is also required
to provide certain information in Form 10F such as status, nationality, Tax Identification
Number, period for which the assessee is a resident in the concerned country, address and
a declaration that the certificate of him being a resident is obtained. If any information in
Form 10F is already provided on the certificate of residency, then the same need not be
provided again in the form. However, where the unit holder, resident or non-resident, does
not furnish its Permanent Account Number to the mutual fund, then tax will be withheld
at the rate of 20% even if the DTAA or the Act provide for a lower rate.
FROM CAPITAL GAINS ON TRANSFER OF UNITS OF EQUITY ORIENTED FUND WHERE
SECURITIES TRANSACTION TAX IS PAID
(a) In respect of Resident Unit holders :
No tax is required to be deducted at source on capital gains arising to any resident Unit
holder (under section 194K) vide circular no. 715 dated August 8, 1995 issued by the
Central Board for Direct Taxes (CBDT).
(b) In respect of Non- Resident Unit holders:

As per the provisions of Section 195 r.w.s 196D(2) of the Act, tax is required to be deducted
at source from the redemption proceeds paid to investors. This withholding is in addition
to and independent of the securities transaction tax payable, if any, by the investor.
Under Section 195 of the I.T. Act, tax shall be deducted at source in respect of capital
gains as under:
Category of Investor

Rate at which tax is


deductible on short
term capital gains
(see note 1 below)

Rate at which tax is


deductible on long
term capital gains
(see note 1 below)

Foreign companies (including QFI)

15%

NIL

FIIs, s, FPIs

NIL

NIL

Other non-residents (including QFI)


15%
NIL
Note:
In case of companies if income exceeds Rs. 1 crore but not more than Rs 10 crore, then
the tax payable would be increased by a surcharge @ 7% in case of domestic companies
and @ 2% in case of foreign companies and if income exceeds Rs 10 crore then surcharge
@ 12% in case of domestic companies and @ 5% in case of foreign companies would be
applicable. In the case of Individuals, where taxable income of the individual exceeds Rs
1 crore, surcharge @ 12% would be applicable. In all cases, the tax payable (as increased
by surcharge would be further increased by Education Cess (2%) and Secondary & Higher
Education Cess (1%).
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a
country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits
under the DTAA, the assessee would have to provide a certificate of his being resident
(commonly known as Tax Residency Certificate) from the government of the country in
which he is a resident. In addition to the said certificate, the concerned non resident is
also required to provide certain information in Form 10F such as status, nationality, Tax
Identification Number, period for which the assessee is a resident in the concerned country,
address and a declaration that the certificate of him being a resident is obtained. If any
information in Form 10F is already provided on the certificate of residency, then the same
need not be provided again in the form.
However, where the non resident unit holder does not furnish its Permanent Account
Number to the mutual fund, then tax will be withheld at the rate of 20% even if the DTAA
or the Act provide for a lower rate.
SECURITIES TRANSACTION TAX
IN RESPECT OF UNITS OF OTHER THAN EQUITY ORIENTED FUNDS
Securities Transaction Tax (STT) is not applicable on transactions of purchase or sale of
units of a non equity oriented mutual fund.
IN RESPECT OF UNITS OF EQUITY ORIENTED FUNDS
STT is applicable on transactions of purchase or sale of units of an equity oriented fund
entered into on a recognized stock exchange or on sale of units of an equity oriented fund
to the Fund. The STT rates as applicable are given in the following table:
Taxable securities transaction

Rate (as a %
of value of the
transaction)

Payable by

Purchase/ Sale of Equity Shares on recognised stock


0.1%
exchange (delivery based)

Purchaser/
Seller

Purchase of an unit of an equity oriented fund, where


The transaction of such purchase is entered into in a
recognised stock exchange; and The contract for the NIL
purchase of such share is settled by the actual delivery
or transfer of such share.

Purchaser

Sale of an unit of an equity oriented fund, where


The transaction of such sale is entered into in a
recognised stock exchange; and
0.001%
The contract for the sale of such share is settled by the
actual delivery or transfer of such share.

Seller

Sale of an equity share in a company or a unit of equity


oriented fund, where The transaction of such sale
is entered into in a recognised stock exchange; and
0.025%
The contract for the sale of such share is settled
otherwise than by the actual delivery or transfer

Seller

Sale of unit of an equity oriented fund to the Mutual


0.001%
Fund itself

Seller

Sale of an option in securities,

Seller

0.017%

In case of sale of option in securities, where option


0.125%
is exercised

Purchaser

Sale of a futures in securities


0.01%
Seller
The Fund is responsible for collecting the STT from every person who sells the Unit to it at
the rate mentioned above. The STT collected by the Fund during any month will have to
be deposited with the Central Government by the seventh day of the month immediately
following the said month.

INVESTMENTS BY CHARITABLE AND RELIGIOUS TRUSTS


Units of a Fund Scheme referred to in section 10(23D) of the Act constitute an eligible
avenue for investment by charitable or religious trusts per rule 17C of the Income Tax Rules,
1962, read with clause (xii) of sub-section (5) of Section 11 of the Income Tax Act, 1961.
WEALTH TAX
Finance Act, 2015 has ceased the applicability of wealth tax from 01-04-2015. Hence the
same is not applicable.
GIFT TAX
The Gift-tax Act, 1958, has ceased to apply to gifts made on or after 1 October 1998. Gift
of units purchased under the Scheme would therefore be exempt from Gift Tax. However
if any Individual or an Hindu Undivided Family receives a gift of units of any mutual fund
whose market value exceeds Rs. 50,000/- and such gift is received from a person other
than relative as defined in section 56 of the Act, then the value of such gift would be
considered as the income of the recipient and would be added to the normal income of
such person for income tax purpose.
EXEMPTION FROM CAPITAL GAINS ON MERGER OF MUTUAL FUND SCHEMES
In order to facilitate consolidation of such schemes of mutual funds in the interest of the
investors, Finance Act, 2015 has provided tax neutrality to unit holders upon consolidation
or merger of mutual fund schemes provided that the consolidation is of two or more
schemes of an equity oriented fund or two or more schemes of a fund other than equity
oriented fund.
Consolidating scheme is defined as the scheme of a mutual fund which merges under the
process of consolidation of the schemes of mutual fund in accordance with the Securities
and Exchange Board of India (Mutual Funds) Regulations, 1996 and consolidated scheme
as the scheme with which the consolidating scheme merges or which is formed as a result
of such merger.
The cost of acquisition of the units of consolidated scheme shall be the cost of units in
the consolidating scheme and period of holding of the units of the consolidated scheme
shall include the period for which the units in consolidating schemes were held by the
unit holder.
These amendments are effective from 1st April, 2015 and will accordingly apply, in relation
to the financial year 2015-16 (assessment year 2016-17) and subsequent assessment years.
Permanant Account Number
In accordance with Circular dated April 27, 2007 issued by the Securities and Exchange
Board of India (SEBI), Permanent Account Number (PAN) issued by the Income Tax
authorities will be used as the sole identification number for all investors (existing and
prospective) transacting in the securities market, including mutual funds, irrespective of
the amount of transaction, (except for Micro SIP) with effect from July 02, 2007.
As per SEBI guidelines and as per Rule 114 (B) of Income Tax Rules, 1962, it is mandatory
for every/all the joint investor/s to submit verified copy of his/her/their PAN Card for all
investments irrespective of the amount involved including SIP while opening the SIP
Account. Even NRI investor is also required to submit the same.
If the investment is in the name of a minor, the verified copy of PAN Card of the minor or
his father or mother or legal guardian, who represents the minor, should be submitted.
With effect from January 1,2008 , it is mandatory for all existing and prospective investors
(including joint holders, guardians of minors, NRIs etc) to enclose a verified copy of PAN
proof along with the application for any transaction in the schemes of JM Financial
Mutual Fund.
The verification of the PAN from the original PAN card/ letter can be done by any of the
following under his/her signature, rubber stamp and date
any ARN holder if the PAN proof is self attested by Investor
Bank Manager,
notary,
officials of JM Financial Mutual/ Investor Service Centres of Karvy Computershare Pvt. Ltd.
Investors transacting through approved Web Portals are also required to get their PAN
verified by their Web Portals.
In case, the investor does not conform to the above requirement of submission of verified
copy of PAN or produces original PAN proof for verification or the PAN details as per
furnished verified copy of PAN proof does not match with the Website of Income Tax Deptt.
as prescribed by SEBI, the AMC/its Registrar reserves the right to reject the application
before allotment and refund the investment amount, without any interest.
In case of inadvertent allotment, the AMC reserves the right to revert the transaction &
refund the investment amount, without any interest.
Micro SIP : The mandatory requirement of submitting a copy of PAN card has been
dispensed with in case of Micro SIP (Pls refer to para on Micro SIP for more details).
Daily Net Asset Value (NAV) Publication
The NAV of the schemes will be declared on all Business Days and may be published in 2
newspapers. NAVs can also be viewed on www.JMFinancialmf.com and www.amfiindia.
com. Investors may also contact any of the Investor Service Centres of JM Financial
Mutual Fund
For Investor Grievances please contact
HEAD - CLIENT SERVICES
JM FINANCIAL ASSET MANAGEMENT LTD
(Formerly known as JM Financial Asset Management Private Ltd)
Corporate Identity Number: U65991MH1994PLC078879

502, 5th Floor, A Wing, Laxmi Towers, Bandra Kurla Complex, Bandra (E), Mumbai 400 051.
Tel. No.: (022) 6198 7777 Fax Nos.: (022) 2652 8388; Email: investor@jmfl.com
REGISTRAR: KARVY COMPUTERSHARE PRIVATE LTD
Karvy Plaza, H. No. 8-2-596, Avenue 4 Street No. 1, Banjara Hills, Hyderabad - 500 034 . Tel.
No.: 040 - 2331 2454 / 2332 0251 / 751 Fax No.: 040 - 2331 1968. E-mail: services_jmf@
karvy.com
UNIT HOLDERS INFORMATION:
Accounts Statements
Pursuant to Regulation 36 of SEBI (Mutual Funds) Regulations, 1996 and amendments
thereto, read with SEBI circular No. Cir/ IMD/ DF/16/ 2011 dated September 8, 2011, the
investor whose transaction** has been accepted by the AMC on or after October 1, 2011
shall receive the following:
(i) On acceptance of the application for subscription, an allotment confirmation
specifying the number of units allotted by way of email and/ or SMS within 5 Business
Days from the date of receipt of transaction request to the e-mail address and/or
mobile number registered by the investor.
(ii) Thereafter, a Consolidated Account Statement (CAS)^ for each calendar month to
those Unit holder(s) in whose folio(s) transaction (s)** has/have taken place during the
month. shall be sent by ordinary post / or e-mail (in case e-mail address is provided by
the investor) on or before 10th of the succeeding month. The CAS shall be sent to the
mailing address/ email available in the folio where the customer has last transacted
(including non financial transaction).

^Consolidated Account Statement (CAS) shall contain details relating to all the
transactions** carried out by the investor across all schemes of all mutual funds during
the month and holding at the end of the month including transaction charges paid
to the distributor.

**The word transaction shall include purchase, redemption, switch, dividend payout,
dividend reinvestment, systematic investment plan, systematic withdrawal plan,
systematic transfer plan and bonus transactions.
(iii) For the purpose of sending CAS, common investors across mutual funds shall be
identified by their Permanent Account Number (PAN). The CAS shall not be sent to
the Unit holders for the folio(s) not updated with PAN details.

For folios without a valid PAN, the AMC may send account statements on a monthly
basis on or before the 10th of the succeeding month. The Unit holders are therefore
requested to ensure that the folio(s) are updated with their PAN.
(iv) In case of a specific request received from the Unit holders, the AMC will dispatch the
account statement to the investors within 5 Business Days from the receipt of such
request.
(v) In the event the account has more than one registered holder, the first named Unit
holder shall receive the CAS/ account statement.
(vi) Consolidation shall be done only for folios in which the unit holders and the order
of holding in terms of first, second and third is similar. In case of folios pertaining to
minors, the guardians PAN shall be used for consolidation.
Further, the CAS detailing holding across all schemes of all mutual funds at the end of
every six months (i.e. September/ March), shall be sent by ordinary post / e-mail (in case
e-mail address is provided by the investor), on or before 10th day of succeeding month,
unless a specific request is made to receive in physical, to all such Unit holders in whose
folios no transaction has taken place during that period.
In case of investment though New Fund offers (NFOs), investors will receive the allotment
confirmation from the AMC within the stipulated time.
The statement of holding of the beneficiary account holder for units held in demat will be
sent by the respective Depository Participants (DPs) periodically.
Investors are requested to note the following regarding dispatch of account
statements:
1. The Consolidated Account Statement (CAS) for each calendar month is to be issued
on or before tenth day of succeeding month, to the investors who have provided valid
Permanent Account Number (PAN). Due to this regulatory change, AMC shall now cease
to send physical account statement to the investors after every financial transaction
including systematic transactions. Further, CAS will be sent via email where any of the folios
consolidated has an email id or to the email id of the first unit holder as per KYC records.
2. For folios not included in the Consolidated Account Statement (CAS), the AMC shall
henceforth issue account statement to the investors on a monthly basis, pursuant to any
financial transaction in such folios, on or before tenth day of succeeding month. In case of
a New Fund Offer Period (NFO), the AMC shall send confirmation specifying the number
of units allotted to the applicant by way of a physical account statement or an email and/
or SMS to the investors registered address and/or at email id/mobile number, not later
than five business days from the date of closure of the NFO.
Pursuant to SEBI Circular No. CIR/MRD/DP/31/2014 dated November 12, 2014 regarding
Consolidated Account Statements (CAS) for all the securities assets, the following provisions
shallbe applicable. Investors are requested to note the changes regarding dispatch of
Account Statements to the investors for the transactions done by them in any of the
schemes of the Fund, on or after February 01, 2015.
1. Investors not holding units in Demat Account:
Based on the PAN of the investors, for each calendar month, Consolidated Account
Statement (CAS) shall be dispatched by the Asset Management Companies (AMC)/Registrar
& Transfer Agent (RTA) within 10th day of the succeeding month to the investors in whose

folio transactions have taken place during that previous month.


In case of no transactions by the investors during the period of six months, the CAS shall
be dispatched by the AMC/RTA to the investors on half yearly basis, on or before 10th day
of the succeeding month.
2. Investors holding units in Demat Account:
Based on the PAN of the investors, for each calendar month, Consolidated Account
Statement (CAS) shall be dispatched by the respective Depository within 10th day of the
succeeding month to the investors, in whose folio transactions have taken place during
that previous month.
In case of no transactions by the investors during the period of six months, the CAS shall
be dispatched by the respective Depository to the investors on half yearly basis, on or
before 10th day of the succeeding month.
In case of demat accounts with nil balance and no transactions in securities and in
mutual fund folios, the respective Depository shall send the physical statement as per
the applicable regulations.
In case of statements which are currently being dispatched by email to the investors, the
CAS shall continue to be sent through email. In case the investor does not wish to receive
the CAS by email, option will be given to the investors to receive the same in physical
form, at the address registered in the Depository system. In case no email id is provided,
the statements will be sent in physical form.
Investors are requested to note that in case of any transactions done in the folios which
are not included in the CAS, the AMC shall issue a monthly account statement to the
investors on or before 10th day of the succeeding month. In case no email id is provided,
the statements will be sent in physical form.
Investors whose folio(s)/demat account(s) are not updated with PAN, shall not receive
the CAS. Hence, investors are hereby requested to update their folio(s)/demat account(s)
with the PAN.
In case of STP/SWP:
In case of specific request received from investors, the Fund/Registrar will provide the
account statement to the investors within 5 business days from the receipt of such request
without any charges. Further, soft copy of the account statement shall be mailed to the
investors under SIP/STP/SWP to their e-mail address on a monthly basis, if email id is
furnished in the folio concerned.
Exchange Platforms:
An account statement/Consolidated Account Statement (CAS) will be issued by the Mutual
Fund to investors who purchase/ redeem their units under this facility in physical mode. In
case of investors who intend to deal in units in depository mode, a demat statement will
be sent by Depository Participant showing the credit/debit of units to their account. The
units will be transferred to investors demat account via the exchange clearing corporations
and broker through whom the units are purchased.
Monthly Portfolio Disclosure
As per SEBI circular no. Cir/IMD/DF/21/2012 dated September 13, 2012, the AMC shall
disclose the portfolio (along with ISIN) as on the last day of the month for all its schemes
on its website on or before the tenth day of the succeeding month or within such time
lines as prescribed by SEBI, from time to time.
Half yearly Portfolio:
The mutual fund shall publish a complete statement of the scheme portfolio within one
month from the close of each half year (i.e. 31st March and 30th September), by way of an
advertisement at least, in one National English daily and one regional newspaper in the
language of the region where the head office of the mutual fund is located.
The mutual fund may opt to send the portfolio to all unit holders in lieu of the advertisement.
These shall also be displayed on website of the Fund, i.e. www.JMFinancialmf.com.
Half Yearly Financial Results:
The mutual fund and asset management company shall within one month from the close
of each half year, that is on 31st March and on 30th September, host a soft copy of its
unaudited / audited financial results on its website.
The Mutual Fund shall give an advertisement disclosing the hosting of the financial results
on the website in atleast one English daily newspaper having nationwide circulation and
in a newspaper having wide circulation published in the regional language where the
Corporate Office of the Mutual Fund is situated.
Annual Report:
Scheme wise Annual Report or an abridged summary thereof shall be sent to all unitholders
within four months from the date of closure of the relevant accounts year i.e. 31st March
each year.
Pursuant to SEBI Circular No. Cir/ IMD/ DF/ 16/ 2011 dated September 8, 2011, the following
provision with respect to sending annual report of scheme(s) of the Mutual Fund or
abridged annual report will be applicable. The scheme wise annual report or an abridged
summary hereinafter shall be sent by the AMC as under:
(i) by email to the unitholders whose e-mail address is available with the AMC
(ii) in physical form to the unitholders whose email address is not available with the AMC
and/ or to those unitholders who have opted/ requested for the same.
The physical copy of the schemewise annual report or abridged summary shall be made
available to the investors at the registered office of the AMC. A link of the scheme annual
report or abridged summary shall be displayed prominently on the website of the Mutual
Fund.
PREVENTION OF MONEY LAUNDERING & KNOW YOUR CUSTOMER

In terms of the Prevention of Money Laundering Act, 2002, the Rules issued there under
and the guidelines / circulars issued by SEBI regarding the Anti Money Laundering (AML
Laws), all intermediaries, including Mutual Funds, have to formulate and implement a client
identification programme, verification of identity and address, financial status, occupation
and such other personal information.
With effect from January 1, 2011, it is mandatory in case of all the investors(Individual/NonIndividuals) to be KYC Compliant, irrespective of the amount of investment.
The Power Of Attorney holders (in case of investments through a PoA Holder) and joint
account holders (in case of investments in joint names) will also have to be KYC compliant.
SPECIAL CASE:
Joint Holders: Joint holders (including first, second and third if any, are required) to be
individually KYC compliant before they can invest with any Mutual Fund. e.g. in case of
three joint holders, all holders need to be KYC compliant and copies of each holders KYC
Acknowledgement must be attached to the investment application form with any Mutual
Fund.
Minors: In case of investments in respect of a Minor, the Guardian should be KYC compliant
and attach his KYC Acknowledgement while investing in the name of the minor. The Minor,
upon attaining majority, should immediately apply for KYC compliance in his/her own capacity
and intimate the concerned Mutual Fund(s) with all the folio details, in order to be able to
transact further in his/her own capacity.
Power of Attorney (PoA) Holder: Investors desirous of investing through a PoA must note
that the KYC compliance requirements are mandatory for both the PoA issuer (i.e. Investor)
and the Attorney (i.e. the holder of PoA), both of whom should be KYC compliant in their
independent capacity and attach their respective KYC Acknowledgements while investing.
For transmission (In case of death of the unit holder): If the deceased is the sole applicant, the
claimant should submit his/her KYC Acknowledgement along with the request and other
relevant documents to effect the transmission in his/her favour.
KYC PROCESS
Pursuant to SEBI Circular No. MIRSD/ Cir-26/ 2011 dated December 23, 2011, SEBI (KYC
Registration Agency)
Regulations, 2011 and SEBI Circular No. MIRSD/SE/Cir-21/2011 dated October 5. 2011, in-order
to implement uniform KYC norms and eliminate duplication of KYC across SEBI registered
intermediaries in the securities market, KYC registration is centralized through KYC Registration
Agencies (KRA) registered with SEBI. Thus each investor has to undergo KYC process only once
in the securities market and the details would be shared with other intermediaries.
1 New investors are requested to use the revised common KYC Application Form with
specified documents as set out in the form and carry out the KYC process including
In-Person Verification (IPV) with any SEBI registered intermediaries including mutual
funds. The revised common KYC Application Forms are also available on our website
www.jmfinancialmf.com.
2 The Mutual Fund shall perform the initial KYC of its new investors and may undertake
enhanced KYC measures commensurate with the risk profile of its investors. The Mutual
Fund shall upload the details of the investors on thesystem of the KYC Registration Agency
(KRA). KRA shall send a letter to the investor within 10 working days of the receipt of the
initial/updated KYC documents from the Mutual Fund, confirming the details thereof.
3 It is mandatory for intermediaries including mutual funds to carry out In-Person
Verification (IPV) of its new investors from the Effective Date. The IPV carried out by any
SEBI registered intermediary can be relied upon by the Mutual Fund. The AMC or NISM/
AMFI certified distributors who are KYD compliant are authorized to undertake the IPV for
Mutual Fund investors. Further, in case of any applications received directly (i.e. without
being routed through the distributors) from the investors, the Mutual Fund may rely upon
the IPV (on the KYC Application Form) performed by scheduled commercial banks.
4 Once the investor has done KYC as per the revised process with a SEBI registered
intermediary, the investor need not undergo the same process again with another
intermediary including mutual funds. However, the Mutual Fund reserves the right to
carry out fresh KYC of the investor.
5 The AMC reserves the right to reject application forms for transactions in units of the
Mutual Fund not accompanied by letter/ acknowledgement issued by KRA. The KYC
compliance status will be validated with the records of the KRA before allotting units.
6 Existing KYC compliant investors of the Mutual Fund, who have completed the KYC
process prior to January 01, 2012, can continue to invest as per the practice prevalent
prior to the effective date. However it will not be applicable for investments in securities
market. These investors, if they wish to deal with any SEBI registered intermediary other
than mutual funds, will have to follow the new KYC procedure.
Note: The above change in relation to KYC process shall be applicable in respect of all
investment applications ( including MICRO SIP ) by new investors made on or after January
01, 2012.
All investors (Individuals or Non Individuals) who wish to make an investment in a mutual fund
scheme through purchase or switch via a Lumpsum amount or via a Systematic Plan (SIP/STP)
(including MICRO SIP) will be required to complete the KYC process. This one-time verification
is valid for transactions across all mutual funds. Submission of KYC acknowledgement is
mandatory for the following :
All unit holders ( including joint holders ) i.e. Resident & Non resident Individuals
All Non Individual unit holders
HUF and its Karta
Guardian of Minor
Power of Attorney holder

Financial Institutions to whom the units of Mutual Fund are pledged.


PAN Exempted cases ( provided sufficient documentary evidence in support of such
claims is submitted ) :

In case of transactions undertaken on behalf of Central Government and/or State
Government and by officials appointed by Courts e.g. Official liquidator, Court receiver
etc.

Investors residing in the state of Sikkim

UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India

MICRO SIP
Point of Service (POS) of the intermediaries will accept KYC Application Forms along with
the necessary documents as set out in the KYC form (including originals if the copies are
not attested) verify documents, conduct In-Person Verification (IPV) and provide the KYC
Acknowledgement (across the counter on a best effort basis). KYC application and necessary
documents as set out in the form should be submitted along-with Financial Transactions to
any branch of the AMC. The KYC form after completion of IPV process can also be submitted
to the Investor Service Centre of Registrar & Transfer Agent along-with Financial Transactions.
Individual ( including NRI / PIO ) & Non Individual investors will have to produce Proof
of identity, Proof of Address and other mandatory documents as set out in the KYC
Application Form.
NRIs/PIOs, in addition to the certified true copy of the passport will also be required to
furnish certified true copy of the overseas address and permanent address. If any of the
documents (including attestations/ certifications) towards proof of identity or address
is in a foreign language, they have to be translated to English for submission. The
documents can be attested, by the Consulate office or overseas branches of scheduled
commercial banks registered in India. A PIO, in addition, will also be required to submit
a certified true copy of the PIO Card.
The documents submitted as per the above process by the investor to the Point of Service of
the Intermediaries would be forwarded to the KRA. The KRA on receipt of documents from
Intermediaries would send a confirmation to investors.
Once the investor has completed the KYC process as per the revised guidelines with a SEBI
registered intermediary from any KRA, the investor need not undergo the same process
again with another intermediary including Mutual Funds. However, the Mutual Fund reserves
the right to carry out fresh KYC of the investor. The investor needs to produce a copy of the
confirmation letter received from KRA when investing for the first time with a Mutual Fund for
fresh investments or additional purchases in an existing folio as per the aforesaid requirements
or till his KYC status is updated successfully as per the new revised KYC norms.
Existing KYC compliant investors of the Mutual Fund, who have completed the KYC process
prior to January 01, 2012, can continue to invest in Mutual Fund schemes as per the current
practice i.e. by submitting along with their Financial Transaction the KYC acknowledgement
issued prior to January 01, 2012 by CVL on behalf of all Mutual Funds. However it will not be
applicable for investments in other securities markets. These investors, in case they wish to
deal with any SEBI registered intermediary other than mutual funds, will have to follow the
new KYC procedure.
An existing investor can inform the Mutual Fund to update the KYC Acknowledgement against
all the folios/accounts held by him with the respective Mutual Fund. However, each of the
holders in these folios/accounts should be KYC Compliant. Applications Forms / Transaction
Slips not accompanied by KYC Acknowledgement / Confirmation letter are liable to be rejected
by the Mutual Fund and no transactions, other than redemption, will be permitted. Investors
are advised to complete KYC process through KRA at the earliest.
Further, in order to ensure that the unitholder receives all communications, including
redemption requests, at the new address, investors are also advised to forward any request for
change of address only to same POS/ intermediaries sufficiently in advance of any transaction
with the Fund House. Investors holding erstwhile MIN/ KYC Compliance Acknowledgement
and who have since changed their address with Karvy are requested to approach POS /KRA
and complete the process stated above. Kindly note that the Mutual Fund, the AMC or the
Trustees shall not be liable in case the investor does not follow the above procedure for
change of address or the earlier address continues to be in the Registrars database. AMC or
its Registrar will update change of address requests of KYC compliant investors based on the
data provided by KRA and will not be responsible for non-updation if not received sufficiently
in advance of any transaction.
Investors are advised to approach the same POS/ intermediaries from where the KYC
acknowledgement was issued in case they wish to rectify any data entry mistake by POS/KRA.
For details on documents to be submitted pls refer to the revised KYC forms available this site,
AMFI website ( www.amfiindia.com ) or on website of any SEBI registered KRAs.
New KYC Requirement:
Securities and Exchange Board of India (SEBI) vide its various circulars dated October 05,
2011, December 02, 2011 and December 23, 2011 have prescribed the requirements, for
the implementation of Uniform Know Your Customer (KYC) process across all intermediaries
registered with SEBI.
Pursuant to the above, the existing / new investors of the Mutual Fund are required to take
note of the following:
1. Investment by Investors who are KYC Compliant through KRAs (KYC Registration Agency)
on or after January 1, 2012 :

No action is required by such investors and they may invest in any Mutual Funds. However,
Non-individual entities like Corporate, Partnership Firm, Trust etc are required to submit
their Balance Sheet for every Financial Year on an ongoing basis within a reasonable
period to KYC Registration Agency (KRA).

2.

Investment in existing folios by Investors who are CVL MF KYC Compliant prior to January
1, 2012:

In case of the existing investors who are CVL MF KYC Compliant through the erstwhile
centralized KYC registration agency i.e. CDSL Ventures Ltd. (CVLMF), there will be no
effect on their subsequent transactions (including Systematic Investment Plan) in their
existing folios/accounts. However, the KYC status of such investors will continue to reflect
as MF VERIFIED BY CVLMF in the CVL KRA system.
3. Investment by new Investor who is CVL MF KYC Compliant:

In case a new investor who is CVL MF KYC Compliant wishes to invest as a sole investor
in a new folio in JM Financial Mutual Fund or he wishes to invest jointly with another
existing investor/s of JM Financial Mutual Fund who is/are also CVL MF KYC Compliant,
then such investor/s will have to submit the KYC Details Change Form along with the
investment application and complete the IPV process.
4. Investment by Non-KYC Compliant Investors (Individual or Non-Individual):

Non-KYC compliant investor/s desirous of investment, are required to submit the duly
filled in KYC Application Form along with necessary documents for completion of KYC
certification through KYC Registration Agencies (KRAs) and complete the In-person
Verification (IPV) at the time of making any investment.
5. Requirements from CVLMF KYC Compliant investors (i.e. KYC compliant prior to January
1, 2012):

I. Individual Investors:


In case, the individual investor is KYC compliant prior to January 1, 2012, the investor
will have to submitKYC Details Change Formwith respective applicable documents,
(if any) mentioned therein to update their Missing/Not Available details besides
completing the IPV process as a one time exercise. After due verification by the
respective KRA e.g. M/s CVL, the KYC status will get changed from MF VERIFIED
BY CVLMF to Verified by CVL KRA.


In case of individuals, missing/not available details are as under :


a.
Fathers/Spouse Name


b.
Marital Status


c.
Nationality


d.
In-person Verification (IPV)

II. Non - Individual investors:


In case of all Non individual investors who are KYC compliant prior to January 1,
2012, KYC process with IPV needs to be done afresh due to significant and major
changes in KYC requirements.
In case of opening of a new folio with JM Financial Mutual Fund or any other Mutual Fund,
the individual & non-individual investors will have to comply with the respective procedures
mentioned above. The above procedure is also applicable for Guardian (in case of Minor) /
Power of Attorney holder as well.
The necessary forms are available on the Mutual Fund website.
GENERAL PROVISIONS REGARDING LOAD
1. Intra & Inter Equity Switches:
No exit load for inter and intra equity switches except in case of (i) switches by SIP/STP
investors within 24 months (for cases registered from 4.1.2008 up to 2.10.2008) and
within 12 months (for cases registered upto 3.1.2008) of respective SIP/STP installments
(ii) switches by STP investors (for cases registered w.e.f. 3.10.2008) within 24 months
of respective STP installments (iii) switches by SIP investors (for cases registered w.e.f.
3.10.2008) within 12 months of respective SIP installments (iv) switches to / from JM
Arbitrage Advantage Fund to any equity schemes.
It is clarified that applicable exit load, if any, will be charged for redemptions/ switch outs
of the scheme (i.e. at portfolio level) before the completion of the stipulated load/lock-in
period. The stipulated load/lock-in period will be reckoned from the date of allotment
of units for a particular transaction in the scheme (i.e. at portfolio level) till the date of
redemption/switch out from that scheme, irrespective of the number of intra-scheme
switches by the investor between the aforementioned two dates (e.g switches between
plans/sub-plans/options/sub-options within the scheme having the same portfolio).
However, Government levies eg. STT (wherever applicable) will continue to be deducted
for every intra-scheme switch-out /redemption transactions.
2. No entry load:
In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/1
68230/09 dated June 30, 2009, no entry load will be charged for purchase / additional
purchase / switch-in accepted by the Fund with effect from August 1, 2009. Similarly, no
entry load will be charged with respect to applications for registrations under Systematic
Investment Plan/ Systematic Transfer Plan / accepted by the Fund with effect from August
1, 2009.
The upfront commission on investment made by the investor, if any, shall be paid to the
ARN Holder (AMFI registered Distributor) directly by the investor, based on the investors
assessment of various factors including service rendered by the ARN Holder
3. No Load on Bonus Unit and Units alloted on Re-investment of Dividend: Pursuant
to SEBI vide circular SEBI/IMD/CIR No. 14/120784/08 dated March 18, 2008 the AMC shall
not charge entry as well as exit load on Bonus units and on units alloted on Re-investment
of Dividend.
4. Exit Load/Contingent Deferred Sales Charge (CDSC)
With effect from August 1, 2009, exit load/ CDSC (if any) up to 1% of the redemption value
charged to the Unitholder by the Fund on redemption of units shall be retained by each

of the Schemes in a separate account and will be utilized for payment of commissions to
the ARN Holder and to meet other marketing and selling expenses.
Any amount in excess of 1% of the redemption value charged to the Unitholder as exit
load/ CDSC shall be credited to the respective Scheme immediately.
In case of Direct Plan:
No exit load shall be charged for any switch of investments between Existing Plan (whether
the investments were made before or after the Effective Date) and Direct Plan within the
same scheme. The applicable exit load, if any, will be charged for redemptions/ switch outs
of the scheme (i.e. at portfolio level) before the completion of the stipulated load/ lock-in
period. The stipulated load/ lock-in period will be reckoned from the date of allotment
of units for a particular transaction in the scheme (i.e. at portfolio level) till the date of
redemption / switch out from that scheme, irrespective of the number of intra-scheme
switches by the investor between the aforementioned two dates (e.g. switches between
plans/sub-plans/options/sub-options within the scheme having the same portfolio)
The extant provisions of applicability of load on redemptions/ switches from one Scheme
to another will continue to be applicable.
5. Change in the load structure
The Trustee reserves the right to modify/alter the load structure and may decide to charge
an exit load or a combination of exit loads (i.e. slabs of load based on tenure of holding)
on the Units with prospective effect, subject to the maximum limits as prescribed under
the SEBI Regulations. At the time of changing the load structure, the AMC shall take the
following steps:
a) The addendum detailing the changes shall be attached to Scheme Information
Documents and Key Information Memoranda. The addendum will be circulated
to all the distributors so that the same can be attached to all Scheme Information
Documents and Key Information Memoranda already in stock. The addendum shall
also be sent alongwith the newsletter sent to the Unitholders immediately after the
changes.
b) Arrangements shall be made to display the changes/modifications in the Scheme
Information Document in the form of a notice in all the JM ISCs and distributors
offices.
c) The introduction of the exit load alongwith the details shall be stamped in the
acknowledgement slip issued to the investors on submission of the application form
and may also be disclosed in the statement of accounts issued after the introduction
of such load.
d) The Fund shall arrange to display a notice in the JM ISCs at least 1 (one) day before
the change of the then prevalent load structure.
The investor is requested to check the prevailing load structure of the scheme before
investing.
transaction charges
(i) First Time Mutual Fund Investor (across Mutual Funds):

Transaction charge of Rs. 150/- for subscription of Rs. 10,000 and above will be
deducted from the subscription amount and paid to the distributor/ agent of the
first time investor and the balance shall be invested.
(ii) Investor other than First Time Mutual Fund Investor:

Transaction charge of Rs. 100/- per subscription of Rs. 10,000 and above will be
deducted from the subscription amount and paid to the distributor/ agent of the
investor and the balance shall be invested. Transaction charges (Rs. 150/- or Rs. 100/as may be applicable) in case of investments through Systematic Investment Plan
(SIP) shall be deducted only if the total commitment (i.e. amount per SIP installment
x No. of installments) amounts to Rs. 10,000/- or more. The Transaction Charges shall
be deducted in 4 installments.

Investors may note that distributors have an option to opt in or opt out of charging the
transaction charge. Pursuant to SEBI circular no. Cir/IMD/DF/21/2012 dated September
13, 2012, effective November 1, 2012 distributors shall also have the option to either
opt in or opt out of levying transaction charges, based on type of the product.
(iii) Transaction charges shall not be deducted for:

(a) purchases /subscriptions for an amount less than Rs. 10,000/-;

(b) transaction other than purchases/ subscriptions relating to new inflows, such
as Switch, STP, etc.

(c) purchases/ subscriptions made directly with the Fund (i.e. not through any
distributor/agent).

(d) Transactions, wherein the concerned distributor has not opted-in for transaction
charges.

(e) Transactions done through Stock Excghange platform.


It is also clarified that minimum investment criteria shall be monitored at the gross
investment amount level (i.e. amount before deducting transaction charges).

In terms of Best Practice Circular no. 20/2010-11 dated February 9, 2011, following
provisions are applicable w.e.f. April 1, 2011:
1. On Behalf of Minor Accounts: Where the account/folio (account) is opened on
behalf of a minor:
(a) The minor shall be the first and the sole holder in an account. There shall not be any
joint accounts with minor as the first or joint holder.
(b) The Guardian in the folio on behalf of the minor should either be a natural guardian
(i.e. father or mother) or a court appointed legal guardian. Information on the
relationship/status of the guardian as father, mother or legal guardian should be
provided to the AMC/ the Registrar of JM Financial Mutual Fund (the Registrar). If

(c)




2.
(a)

(b)

(c)






(d)




3.

(a)
(b)
(c)

(d)


(e)
(f )
4.
(a)
(b)

(c)
(d)

the documents mentioned in clause (c) below do not provide information evidencing
the relationship of natural guardian to the minor, separate documents establishing
the relationship should be provided. In case of court appointed legal guardian,
supporting documentary evidence should be submitted.
Date of birth of the minor along with photocopy of supporting documents as
enumerated below shall be mandatory while opening the account on behalf of minor:
1. Birth certificate of the minor, or
2. School leaving certificate / Mark sheet issued by Higher Secondary Board of
respective states, ICSE, CBSE etc., or
3. Passport of the minor, or
4. Any other suitable proof evidencing the date of birth of the minor.
Minor Attaining Majority Status Change:
Prior to minor attaining majority, the AMC/ Registrar will send advance notice to the
registered correspondence address advising the guardian and the minor to submit
an application form along with prescribed documents (as per (e) below) to change
the status of the account to major.
The account shall be frozen for operation by the guardian on the day the minor
attains the age of majority and no transactions shall be permitted till the documents
for changing the staus are received. However, the AMC will continue to process the
existing standing instructions like SIP, STP, SWP registered prior to the minor attaining
majority and send a intimation to that effect.
In case of existing standing instructions including STP, SIP and SWP registered
prior to the minor attaining majority, the AMC will send an advance notice to the
registered correspondence address advising the guardian and the minor that the
existing standing instructions will continue to be processed beyond the date of the
minor attaining majority till the time a instruction from the major to terminate the
standing instruction is received by the mutual fund along with the below mentioned
documents:
1. Services Request form, duly filled and containing details like name of major, folio
numbers, etc.
2. New Bank mandate where account changed from minor to major,
3. Signature attestation of the major by a manager of a scheduled bank / Bank
Certificate/ Letter,
4. KYC acknowledgement of the major.

The standing instruction shall be terminated within 30 days from the date of
receiving the instruction.
List of standard documents required to change the account status from minor to
major:
1. Services Request form, duly filled and containing details like name of major, folio
numbers, etc.
2. New Bank mandate where account has been changed from minor to major,
3. Signature attestation of the major by a manager of a scheduled bank / Bank
Certificate / Letter,
4. KYC acknowledgement of the major.
Change in Guardian: When there is a change in guardian either due to mutual
consent or demise of existing guardian, following documents should be submitted
to the AMC/ the Registrar prior to registering the new guardian:
Request letter from the new guardian,
No Objection Letter (NoC) or Consent Letter from existing guardian or Court Order
for new guardian, in case the existing guardian is alive.
Notarized copy or attested copy of the Death Certificate of the deceased guardian,
where applicable. The attestation may also be done by a special executive magistrate,
AMC authorised official or manager of a scheduled bank.
The new guardian must be a natural guardian (i.e. father or mother) or a court
appointed legal guardian.
1. Information on the relationship/status of the guardian as father, mother or legal
guardian should be specified in the application form.
2. In case of natural guardian, a document evidencing the relationship if the same
is not available as part of the documents submitted as per sub clause c of clause 1
mentioned above
3. In case of court appointed legal guardian, supporting documentary evidence
should be submitted.
Bank attestation attesting the signature of the new guardian in a bank account of
the minor where the new guardian is registered as the guardian.
KYC of the new guardian.
Nomination facility
Nomination should be maintained at the folio or account level and should be
applicable for investments in all schemes in the folio or account.
Where a folio has joint holders, all joint holders should sign the request for nomination/
cancellation of nomination, even if the mode of holding is not joint. Nomination
form cannot be signed by Power of attorney (PoA) holders.
Every new nomination for a folio/account will overwrite the existing nomination.
Nomination shall be mandatory for new folios/accounts opened by individual
especially with sole holding and no new folios/accounts for individuals in single
holding will be opened without nomination.
1. Even those investors who do not wish to nominate must sign separately confirming

their non-intention to nominate.


(e) Nomination will not allowed in a folio held on behalf of a minor.
5. Transmission: We have set out below the list of the documents required for
transmission under various situations:
a. Transmission to surviving unit holders in case of death of one or more unitholders:

1. Letter from surviving unitholders to the Fund / AMC / RTA requesting for
transmission of units,

2. Death Certificate in original or photocopy duly notarized or attested by gazette
officer or a bank manager,

3. Bank Account Details of the new first unit holder as per specified format along
with attestation by a bank branch manager or cancelled cheque bearing the
account details and account holders name.

4. KYC of the surviving unit holders, if not already available.

5. Application form duly completed and signed with signature verification done
by Bank Manager/Notary Public/Gazzetted Officer with his designation, name
and official seal.
b. Transmission to registered nominee/s in case of death of Sole or All unit holders:

1. Letter from claimant nominee/s to the Fund / AMC / RTA requesting for
transmission of units,

2. Death Certificate/s in original or photocopy duly notarized or attested by gazette
officer or a bank manager,

3. Bank Account Details of the new first unit holder as per specified format along
with attestation by a bank branch manager or cancelled cheque bearing the
account details and account holders name.

4. KYC of the claimant/s,

5. Application form duly completed and signed with signature verification done
by Bank Manager/Notary Public/Gazzetted Officer with his designation, name
and official seal.
c. Transmission to claimant/s, where nominee is not registered, in case of death of Sole
or All unit holders:

1. Letter from claimant/s to the Fund / AMC / RTA requesting for transmission of
units,

2. Death Certificate/s in original or photocopy duly notarized or attested by gazette
officer or a bank manager,

3. Bank Account Details of the new first unit holder as per specified format along
with attestation by a bank branch manager or cancelled cheque bearing the
account details and account holders name.

4. KYC of the claimant/s,

5. Indemnity Bond from legal heir/s as per specified format.

6. Individual affidavits from legal heir/s as per specified format

7. If the transmission amount is below Rs. Two Lakh any appropriate document
evidencing relationship of the claimant/s with the deceased unitholder/s.

8. If the transmission amount is Rs Two Lakh or more any one of the documents
mentioned below:


a. Notarised copy of Probated Will, or


b. Legal Heir Certificate or Succession Certificate or Claimants Certificate issued
by a competent court, or


c. Letter of Administration, in case of Intestate Succession.
d. Transmission in case of HUF, due to death of Karta: HUF, being a Hindu Undivided
Family, the property of the family is managed by the Karta and HUF does not come to
an end in the event of death of the Karta. In such a case, the members of the HUF will
appoint the new Karta who needs to submit following documents for transmission:

1. Letter Requesting for change of Karta,

2. Death Certificate in original or photocopy duly notarized or attested by gazette
officer or a bank manager,

3. Duly certified Bank certificate stating that the signature and details of new Karta
have been appended in the bank account of the HUF as per specified format

4. KYC of the new Karta and KYC of HUF, if not already available.

5. Indemnity bond signed by all the surviving coparceners and new Karta as per
specified format.

6. In case of no surviving co-parceners and the transmission amount is Rs Two
Lakh or more OR where there is an objection from any surviving members of
the HUF, transmission shall be effected only on the basis of any of the following
mandatory documents:


a. Notarized copy of Settlement Deed, or


b. Notarized copy of Deed of Partition, or


c. Notarized copy of Decree of the relevant competent Court
holding of units in demat form
Option to hold Units in dematerialized (demat) form :
Pursuant to SEBI Circular no. CIR/IMD/DF/9/2011 dated May 19, 2011, an option to subscribe
to the units of open ended, close ended, Interval schemes in dematerialized (demat) form
shall be provided to the investors effective October 1,2011. Consequently, the Unit holders
under the Scheme(s)/ Plan(s) shall have an option to subscribe/ hold the Units in demat
form in accordance with the provisions laid under the respective Scheme(s)/Plan(s) and in
terms of the guidelines/ procedural requirements as laid by the Depositories (NSDL/ CDSL)
from time to time. In case, the Unit holder desires to hold the Units in a Dematerialized

/Rematerialized form at a later date, the request for conversion of units held in physical
form into Demat (electronic) form or vice-versa should be submitted along with a Demat/
Remat Request Form to their DPs. Provisions with respect to transaction in units held in
Demat mode:
(i) Units held in demat form will be transferable subject to the provisions laid under the
respective Scheme(s)/Plan(s) and in accordance with provisions of Depositories Act,
1996 and the Securities and Exchange Board of India (Depositories and Participants)
Regulations, 1996 as may be amended from time to time.
(ii) An existing investor who wants to redeem units held in his demat account has to
approach his depository participant (DP) directly.
(iii) Switch transactions from one scheme/plan to another scheme/ plan is not permitted
for investors holding the units in Demat. Investors desirous of switching their units
need to follow the procedure of rematerialisation of their demat holdings and after
that they may apply for switch through physical mode.
(iv) It is also clarified that provision of minimum investment/ balance/ redemption amount
shall not be applicable for transactions done in demat mode, post initial allotment of
units in demat mode. However subscription done in demat mode, directly through
the Mutual Fund, shall be subject to minimum investment criteria.
It is clarified that demat facility is available for all schemes of the Mutual Fund except for
subscription through micro SIPs and for daily dividend, weekly dividend and fortnightly
dividend Plans / Options. With effect from January 1, 2012, investors would also have an
option of holding the units in demat form for SIP. However, the units will be allotted, based
on the applicable NAV as per the SID and will be credited to investors demat account on
weekly basis upon realization of funds. For example, units will be credited to investors
demat account every Monday, for realization status received from Monday to Friday in
the previous week.
minor account
In terms of Best Practice Circular no. 20/2010-11 dated February 9, 2011, following
provisions are applicable w.e.f. April 1, 2011:
1. On Behalf of Minor Accounts: Where the account/folio (account) is opened on
behalf of a minor:
(a) The minor shall be the first and the sole holder in an account. There shall not be any
joint accounts with minor as the first or joint holder.
(b) The Guardian in the folio on behalf of the minor should either be a natural guardian
(i.e. father or mother) or a court appointed legal guardian. Information on the
relationship/status of the guardian as father, mother or legal guardian should be
provided to the AMC/the Registrar of JM Financial Mutual Fund (the Registrar). If the
documents mentioned in clause (c) below do not provide information evidencing the
relationship of natural guardian to the minor, separate documents establishing the
relationship should be provided. In case of court appointed legal guardian, supporting
documentary evidence should be submitted.
(c) Date of birth of the minor along with photocopy of supporting documents as
enumerated below shall be mandatory while opening the account on behalf of minor:

1. Birth certificate of the minor, or

2. School leaving certificate / Mark sheet issued by Higher Secondary Board of
respective states, ICSE, CBSE etc., or

3. Passport of the minor, or

4. Any other suitable proof evidencing the date of birth of the minor.
2. Minor Attaining Majority Status Change:
(a) Prior to minor attaining majority, the AMC/ Registrar will send advance notice to the
registered correspondence address advising the guardian and the minor to submit
an application form along with prescribed documents (as per (e) below) to change
the status of the account to major.
(b) The account shall be frozen for operation by the guardian on the day the minor
attains the age of majority and no transactions shall be permitted till the documents
for changing the staus are received. However, the AMC will continue to process the
existing standing instructions like SIP, STP, SWP registered prior to the minor attaining
majority and send a intimation to that effect.
(c) In case of existing standing instructions including STP, SIP and SWP registered
prior to the minor attaining majority, the AMC will send an advance notice to the
registered correspondence address advising the guardian and the minor that the
existing standing instructions will continue to be processed beyond the date of the
minor attaining majority till the time a instruction from the major to terminate the
standing instruction is received by the mutual fund along with the below mentioned
documents:

1. Services Request form, duly filled and containing details like name of major, folio
numbers, etc.

2. New Bank mandate where account changed from minor to major,

3. Signature attestation of the major by a manager of a scheduled bank / Bank
Certificate/ Letter,

4. KYC acknowledgement of the major.


The standing instruction shall be terminated within 30 days from the date of
receiving the instruction.
(d) List of standard documents required to change the account status from minor to
major:

1. Services Request form, duly filled and containing details like name of major, folio
numbers, etc.

2. New Bank mandate where account has been changed from minor to major,

3. Signature attestation of the major by a manager of a scheduled bank / Bank


Certificate / Letter,

4. KYC acknowledgement of the major.
Nomination facility

The nomination can be made only by individuals applying for / holding units on their
own behalf singly or jointly.
In case of Electronic mode of holding units, Non-individuals including Society, Trust,
Body Corporate, Partnership Firm, Karta of Hindu Undivided Family, holder of Power
of Attorney cannot nominate.
A minor can be nominated and in that event, the name and address of the guardian
of the minor nominee shall be provided by the unitholder.

Nomination can also be in favour of the Central Government, State Government, a
local authority, any person designated by virtue of his office or a religious or charitable
trust.
The Nominee shall not be a Trust, (other than a Religious or Charitable Trust), Society,
Body Corporate, Partnership Firm, Karta of a Hindu Undivided Family or a Power of
Attorney holder, in case of physical mode of holding units.

A Non-Resident Indian can be a Nominee subject to the Exchange Control Regulations
of RBI, in force, from time to time.
Nomination in respect of the units stands rescinded upon the transfer of units.
Transfer of units in favour of a Nominee shall be valid discharge by the Asset
Management Company against the legal heir.
The cancellation of nomination can be made only by those individuals who hold units
on their own behalf singly or jointly and who made the original nomination.
On cancellation of the nomination, the nomination shall stand rescinded and the
Asset Management Company shall not be under any obligation to transfer the units
in favour of the Nominee.

The Multiple Nomination Facility has been provided to enable Unitholders to
nominate more than one person, subject to a maximum of three, in whom the Units
held by the Unitholder shall vest in the event of the demise of the Unitholder in the
ratio as stipulated by investor/s. Accordingly, multiple nominees can be made per
folio. Existing and new investors can make a fresh nomination which will supersede
all existing nominations in the folio by filing a fresh nomination form. Nomination is
registered / modified / changed only at folio level and not at scheme/ option / plan
level. The Multiple Nomination Facility has been provided as under :

In case of multiple nominations, it is mandatory for unitholders to indicate the
percentage allocation in favour of the nominees in the nomination forms/ requests
letter in whole numbers such that it totals to 100%, so that the AMC can execute its
obligations to the unit holders.

If the percentage allocation is not mentioned or is left blank, the AMC shall apply the
default option of equal distribution among all the nominees as designated by the
deceased Unitholder/s. In case of 3 nominees, where allocation is not defined, the
allocation by default will be 34%,33% and 33% respectively for each nominee in the
sequential order.
In terms of Best Practice Circular no. 20/2010-11 dated February 9, 2011, following
provisions are applicable w.e.f. April 1, 2011:
(a) Nomination should be maintained at the folio or account level and should be
applicable for investments in all schemes in the folio or account.
(b) Where a folio has joint holders, all joint holders should sign the request for nomination/
cancellation of nomination, even if the mode of holding is not joint. Nomination
form cannot be signed by Power of attorney (PoA) holders.
(c) Every new nomination for a folio/account will overwrite the existing nomination.
(d) Nomination shall be mandatory for new folios/accounts opened by individual
especially with sole holding and no new folios/accounts for individuals in single
holding will be opened without nomination.

1. Even those investors who do not wish to nominate must sign separately
confirming their non-intention to nominate.
(e) Nomination will not allowed in a folio held on behalf of a minor.
CHANGE OF BANK DETAILS AND ADDRESS
A. CHANGE OF BANK DETAILS:
Investors can update the bank account details by submitting either Multiple Bank Account
Registration Form or a standalone separate Change of Bank Mandate form, available with
Investor Services Centers. In other words, forms like common transaction forms, or any
other form containing redemption request having the facility to change the bank mandate
or update a new bank mandate, should not be used.
Investors are required to provide originals of any one of the following documents or
originals should be produced for verification or copy of any of the following supporting
documents duly attested by the bank, in case of :
a. New bank details:

Cancelled original cheque of the new bank mandate bearing the name of the first
unit holder and the bank account number printed on the face of the cheque.

Self attested copy of bank statement

Bank passbook with current entries not older than 3 months.

Bank Letter duly signed by branch manager/authorized personnel
b. Change in existing bank mandate currently registered with the Mutual Fund,

Cancelled original cheque with first unit holder name and bank account number
printed on the face of the cheque.

Original bank account statement / Pass book.


Original letter issued by the bank on the letterhead confirming the bank account
holder with the account details, duly signed and stamped by the Branch Manager/
authorized personnel.

In case such bank account is already closed, a duly signed and stamped original letter
from such bank on the letter head of bank, confirming the closure of said account.
Investors may register multiple bank accounts and choose any of the registered bank
accounts towards receipt of redemption proceeds. Any unregistered bank account or a
new bank account forming part of redemption request will not be processed.
In case of folios/accounts where the bank details were not provided by the investor at the
time of making investment (pertains to the period when bank details were not mandatory),
the said investor shall provide the documents specified at Point a. above (for proof of new
bank details) and a valid photo identity proof.
There will be cooling period of 10 calendar days for processing and registration of new
bank account. In case of receipt of redemption request during the said cooling off period,
the registration of new bank mandate and dispatch of redemption proceeds shall be
completed within 10 business days.
In case, the request for change in bank mandate is invalid/ incomplete/ dissatisfactory
in respect of signature mis-match/ document insufficiency/ not complying with the
requirements set out above, the request for such change will not be processed and
redemption/ dividend proceeds, if any, will be processed in the last registered Bank
Account.
B. CHANGE OF ADDRESS:
KYC Not Complied Folios/Clients:
In case of change of address for KYC Not Complied Folios, investors are required to provide
the following supporting documents:
- Proof of new Address (POA), and
- Proof of Identity (POI): Only PAN card copy, if PAN is updated in the folio, or PAN/ other
proof of identity, if PAN is not updated in the folio.

Additionally, the AMC reserves the right to ask for proof of old address, while effecting
a change of address.
KYC Complied Folios/Clients:
All KYC through KRA complied Investors should approach the POS (point of Service) of
the respective KRAs (KYC Registration Agencies) for the change of address. Once the POA
is updated by the respective KRAs , automatically feeds are sent to the RTA for updating
the same in their database.
Self attested copy of any one of the documents prescribed as list of admissible documents
for POA and POI as mentioned above should be in conformity with SEBI circular no. MIRSD/
SE/Cir21/2011 dated October 5, 2011.
Copies of all the documents submitted by the applicants/investors should be self-attested
and accompanied by originals for verification. In case the original of any document is not
produced for verification, then the copies should be properly attested/verified by entities
authorized for attesting/verification of the documents as per extant KYC guidelines.
Employee Unique Identification No. (EUIN)
In accordance with the SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13,
2012 and AMFI Circular No. 135/BP/33/2012-13 dated December 31, 2012, all the Asset
Management Companies / Mutual Funds are directed to capture the Employee Unique
Identification Number (EUIN) i.e. unique identity number of the employee/relationship
manager/sales person of the distributor (Sales Person) who interacts with the investors
for the purpose of selling the mutual fund products, in addition to the AMFI Registration
Number (ARN) of the distributor.
In accordance with the aforesaid circulars, in case transactions are routed through the
distributor, investors are requested to mention the valid ARN code, Sub-Broker ARN,
Internal Sub Broker code and the EUIN on the transaction slip(s)/application form(s).
The AMC has made the necessary provisions in the transaction slip(s)/application form(s)
i.e. separate spaces for Sub Broker ARN Code and EUIN, in addition to the Distributor
ARN code, have been provided. EUIN shall assist in tackling the problem of mis-selling
even if the employee/relationship manager/sales person leave the employment of the
ARN holder / Sub broker.
From 01.10.2013 EUIN has been made mandatory for both Advisory and Non- Advisory
(i.e execution) transactions. The EUIN remediation may be done by the distributor within
the time permitted by AMFI which is 30 days from the date of transactions received upto
30th June 2014.
All the investors are requested to use the updated transaction slip(s)/applications forms(s).
Non acceptance of subscriptions:
The U.S. Securities and Exchange Commission (SEC) requires that a person falling under
the definition of the term US Person under the Securities Act of 1933 of U.S.A (an Act)
and corporations or other entities organized under the U.S. laws shall not be permitted
to make investments in securities not registered under the Act.
Also, the Canadian Securities Administrator (CSA) mandates prior registration of the fund
with CSA before marketing or selling to the residents of Canada.
The investors are hereby informed that none of the schemes of JM Financial Mutual Fund
(the Mutual Fund) are presently registered under the relevant laws, as applicable in the
territorial jurisdiction of U.S. or in any provincial or territorial jurisdiction of Canada. Hence,
the units made available under the SAI or SID of all the schemes may not be directly or
indirectly be offered for sale in any of the provincial or territorial jurisdiction in U.S. and/
or Canada or to/or for the benefits of the residents thereof. Accordingly, the persons,
corporations and other entities organized under the applicable laws of the U.S. including

Qualified Foreign Investors (QFI) registered in USA and Canada and residents of Canada
as defined under the applicable laws of Canada will not be permitted to make any fresh
purchases/additional purchases/switches in any of the Schemes of the Mutual Fund, in
any manner whatsoever.
The above classes of investors are requested to note the following:
a. No fresh purchases (including Systematic Investment Plans and Systematic Transfer
Plans)/ additional purchases/switches in any Schemes of the Mutual Fund would be
allowed. However, existing Unit Holder(s) will be allowed to redeem their units from
the Schemes of the Mutual Fund. If an existing Unit Holder(s) subsequently becomes
a U.S. Person or Resident of Canada, then such Unit Holder(s) will not be able to
purchase any additional Units in any of the Scheme of the Fund.
b. All existing registered Systematic Investment Plans and Systematic Transfer Plans
would be ceased from the effective date.
c. For transaction from Stock Exchange platform, while transferring units from the
broker account to investor account, if the investor has U.S./Canadian address then
the transactions would be rejected.
d. In case JM Financial Asset Management Ltd. (the AMC)/JM Financial Mutual Fund
subsequently identifies that the subscription amount is received from U.S. Person(s)
or Resident(s) of Canada, in that case the AMC/Mutual Fund at its discretion shall
redeem all the units held by such person from the Scheme of the Mutual Fund at
applicable Net Asset Value.
Who cannot invest:
a. Any individual who is a foreign national or any other entity that is not an Indian
resident under the Foreign Exchange Management Act, 1999, except where registered
with SEBI as a FII or FII sub-account or except for NRIs or PIOs (who are not residents
of the United States of America and Canada), unless such foreign national or other
entity that is not an Indian resident has procured the relevant regulatory approvals
from the Foreign Investment Promotion Board and / or the RBI, as applicable in the
sole discretion and to the sole satisfaction of the AMC.
b. Overseas Corporate Bodies (OCBs), i.e. firms and societies which are held directly
or indirectly but ultimately to the extent of at least 60% by NRIs and trusts in which
at least 60% of the beneficial interest is similarly held irrevocably by such persons
without the prior approval of the RBI.
c. NRIs and PIOs who are resident of the United States of America and Canada.
d. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by
the Financial Action Task Force (FATF), from time to time.
e. Any individual or entity subject to U.S. sanctions (OFAC) or other sanctions or persons
resident in countries which are subject to U.S. sanctions (OFAC) or other sanctions.
f. Any other person determined by the AMC or the Trustee as not being eligible to invest
in the Scheme.
The AMC reserves the right to include/exclude new/existing categories of investors to
invest in the Scheme from time to time, subject to SEBI Regulations & other prevailing
statutory regulations, if any.
ASBA FACility
Additional mode of payment through Applications Supported by Blocked Amount
(hereinafter referred to as ASBA) in Mutual Funds for investing in New Fund offer
(NFO).
In terms of SEBI circulars No. SEBI/IMD/CIR No 18 / 198647 /2010 and Cir / IMD / DF / 6 /
2010 dated March 15, 2010 and July 28, 2010 respectively, the Mutual Fund will extend
ASBA facility to NFO of the Mutual Fund.
Investors will be provided ASBA facility for all NFOs launched on or after October 01,
2010. ASBA means Application Supported by Blocked Amount. ASBA is an application
containing an authorization to block the application money in the bank account, for
applying during the NFO. An ASBA investor shall submit an ASBA physically or electronically
through the internet banking system to the Self Certified Syndicate Bank (SCSB) with
whom the bank account to be blocked, is maintained. Self Certified Syndicate Bank has the
same meaning as given to it in clause (zi) of sub-regulation (1) of regulation 2 of the SEBI
(Issue of Capital and Disclosure Requirements) Regulations, 2009. SCSB is a bank which is
recognized as a bank capable of providing ASBA services to its customers. Names of such
banks would appear on the website of SEBI.
The SCSB shall then block the application money in the bank account specified in the
ASBA, on the basis of an authorization to this effect given by the account holder. The
application money shall remain blocked in the bank account till the allotment of the issue
or till withdrawal/ rejection of the application, as the case may be. ASBA facility will be
available to all categories of investors and will co-exist with the existing process, wherein
cheques/ demand drafts are used as a mode of payment.

S
I
F

STANDING
INSTRUCTION
FACILITY

Application Form

HDFC BANK COPY

(This form is to be used by investors having bank accounts with HDFC Bank Limited)
(Please read terms & conditions overleaf)

KEY PARTNER / AGENT INFORMATION


Name & ARN of Distributor Internal Sub-Broker Code (as alloted by Distributor)

FOR OFFICE USE ONLY


Sub-Broker ARN

Employee Unique Identification No. (EUIN)^

^Mandatory: Furnishing of EUIN is mandatory for all transactions (Purchase/Switch/SIP/STP) or following declaration should be signed by the investor (Please the box).
Declaration: I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this transaction is executed without any interaction or advice by the employee/relationship manager/sales person of the above distributor/sub broker
or notwithstanding the advice of in-appropriateness, if any, provided by the employee/relationship manager/sales person of the distributor/sub broker.

Signature of Sole/First Applicant/Guardian

Signature of Second Applicant

Signature of Third Applicant

Upfront commission shall be paid directly by the investor to the AMFI registered Distributor based on the investors assessment of various factors including the service rendered by the distributor.

REGISTRATION CUM MANDATE FORM FOR STANDING INSTRUCTION WITH HDFC BANK LIMITED
First SIP installment through cheque and subsequent SIP installments via Standing Instruction

The Branch Manager


HDFC Bank Limited
_________________________________ Branch, I / We have read and understood the contents of the Scheme Information Document of the following Scheme of JM Financial Mutual Fund (the Mutual Fund)
and the terms & conditions of SIP Standing Instruction Facility being offered by HDFC Bank Ltd. for its Bank Account Holder. Please (4) any one.
New Registration: I / We hereby apply for enrolment under the SIP via Standing Instruction Facility with HDFC Bank Limited of the following Scheme / Plan / Option of JM Financial Mutual Fund and agree to abide by
the terms and conditions of the Scheme / Plan / Option.
Cancellation: I / We hereby apply for cancellation of the Standing Instruction Facility registered with HDFC Bank Limited for SIP of the following Scheme / Plan / Option of JM Financial Mutual Fund.

INVESTOR AND SIP DETAILS


Sole / First Investor Name
Application No.

Folio No.(For existing investor)

Scheme

Plan / Sub-Plan
Option / Sub-Option
Each SIP Account (Rs.)

Frequency (Please tick any one)

First SIP Transaction via Cheque No.

Cheque Dated

SIP Date (For Standing Instruction)

1st

5th

10th

15th

20th

Monthly *

Quarterly

Amount (Rs.)

25th (Please tick only one date per form)

(Refer Instruction 4 overleaf)

SIP Period (For Standing Instruction)

Start from

End On

Mobile No.

Perpetual(i.e. until it is cancelled)

E-mail ID

IN BLOCK LETTERS

Preferred messaging medium


SMS: Yes
No
E-mail : Yes
No

Note : Please (4) for your preferred medium of messaging.
(* Default Frequency)
I/We hereby authorise HDFC Bank Limited to deduct my/our following bank account (Funding Account) by Standing Instruction Facility for collection of SIP payments on the above mentioned SIP date.

PARTICULARS OF BANK ACCOUNT


Accountholder Name as in Bank Account
Bank Name

Branch Name

City:

Account Number
Account type

Savings

Current

NRE

AUTHORISATION AND SIGNATURES

I/we hereby authorise HDFC Bank Limited to deduct on a monthly/quarterly basis (as a Standing Instruction) from my / our above mentioned Funding Bank Account for collection of SIP payment.
I/we undertake to keep sufficient funds in the funding account on the date of execution of standing instruction. I hereby declare that the particulars given above are correct and complete. If the
transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I would not hold JM Financial Mutual Fund or the Bank responsible. If the date of debit to my/our account
happens to be a non business day as per the Mutual Fund, execution of the SIP debit into bank account will happen on the day of holiday and allotment of units will happen as per the Terms and
Conditions listed in the Scheme Information Document of the Mutual Fund. HDFC Bank shall not be liable for, nor be in default by reason of, any failure or delay in completion of its obligations under
this Agreement, where such failure or delay is caused in whole or in part, by any acts of God, civil war, civil commotion, riot, strike, mutiny, revolution, fire, flood, fog, war, lightening, earthquake,
change of Government policies, unavailability of Banks computer system, force majeure events, or any other cause of peril which is beyond HDFC Banks reasonable control and which has the effect
of preventing the performance of the contract by HDFC Bank. The ARN holder has disclosed to me/us all the commissions (in the form of trail commission or any other mode), payable to him for the
different competing Schemes of various Mutual Funds from amongst which the Scheme is being recommended to me/us.

Scheme Code

Signatures (As in Bank Records)


First / Sole Account Holders
Second Account Holders
Third Account Holders

Investor ref./ Folio No.

Credit Account Number


For Office Use only (Not to be filled in by Investor)
Signature verified by
For CPU use only:

Approved by (BM)

Maintained on
Standing Instruction Start Date

NRO

Standing Instruction End Date

Next Standing Instruction Date

Account Number
Amount (Rs.)

TERMS & CONDITIONS

SIP payment through Standing Instruction to HDFC Bank Limited


1. Please read this Form in conjunction with the SIP Terms and Conditions mentioned on the reverse of the SIP Auto Debit (ECS/DD) Registration Form before
applying.
2. This facility is offered only to the investors having bank accounts with HDFC Bank Limited.
3. Please submit the following documents atleast 30 days before the first SIP date through Standing Instruction, i. e. next installment.
For All New & Existing Investors
Separate Common Application Form for the respective Scheme(s)*/Plan/Option
Separate Standing Instruction Facility Form for each application
First SIP Cheque along with each SIP application
* included in the Key Information Memorandum
4. Standing Instruction Facility is available on a monthly / quarterly basis for any of these specified dates viz. 1st / 5th / 10th / 15th / 20th / 25th.
5. The first cheque should be drawn on any bank, which is situated at and is a member of the Bankers clearing house, located at the place where the application is
submitted.
6. First SIP Cheque and subsequent SIP installments via Standing Instruction should be of the same amount. Please fill up the Standing Instructions Form for each
opted SIP date/Scheme/Plan/Option/Sub-Option.
7. The investor agrees to abide by the terms and conditions of Standing Instruction Facility of HDFC Bank Limited.
8. Investor will not hold HDFC Bank Limited / JM Financial Mutual Fund / JM Financial Asset Management Limited / JM Financial Trustee Company Pvt. Ltd. / its
registrars and other service providers responsible if the transaction is delayed or not effected or the investor bank account is debited in advance or after the
specific SIP date due to local holidays or any other reason.
9. HDFC Bank Limited / JM Financial Mutual Fund / JM Financial Asset Management Limited / JM Financial Trustee Company Pvt. Ltd. / its registrars and other
service providers shall not be responsible and liable for any damages / compensation for any loss, damage etc. incurred by the investor. The investor assumes
the entire risk of using this facility and takes full responsibility.
10. HDFC Bank Limited / JM Financial Mutual Fund / JM Financial Asset Management Limited, reserves the right to reject any application without assigning any
reason thereof.
11. The investor may please refer to the Key Information Memorandum / Scheme Information Document of respective Scheme(s) for Applicable NAV, Risk Factors,
Load and other information.
12. The investor may choose to discontinue this facility by giving Thirty days notice prior to the next SIP due date by written notice to any of the JM Financial Mutual
Fund Investor Service Centres managed by JM Financial Mutual Fund by ticking the appropriate box in printed overleaf and sign the same.
TERMS & CONDITIONS AND INSTRUCTIONS FOR SYSTEMATIC INVESTMENT PLANS
The existing and prospective Investor is advised to refer to the Scheme Information Document and Key Information Memorandum of the respective schemes
carefully before applying for the enrollment under the Systematic Plan.
The Clause on Minimum Amount of subscription as specified in the Scheme Information Document of the respective scheme will not be applicable for investments
made through the first installment of Systematic Investment/Transfer Plan. For example, the minimum investment amount for 1st investment in JM Basic Fund is
Rs.5,000/-. However, in case of SIP, an investor can invest with minimum installment amount of Rs.1,000/- or Rs.500/- per month or Rs. 3000/- per quarter as per the
following table so as to meet the Minimum Investment Amount over the opted period.
Amount per Installment (Rupees in whole Numbers) *

Minimum Mandatory Installments*

Rs. 500 to Rs. 999 per month (For Monthly Frequency)

12 or more out of which 10 installments must be effected

Rs. 1000 or more per month (For Monthly Frequency)

6 or more out of which 5 installments must be effected

Rs. 3000 or more per quarter (For Quarterly Frequency)

2 or more where atleast 2 installment must be effected

*These conditions are to be fulfilled in addition to other conditions.


All applicants are deemed to have accepted the terms and conditions upon tendering the payment and submitting the application form for investment and
Systematic Plan. The other terms & conditions for respective Systematic Plans are mentioned on the reverse page of SIP Auto Debit form. AMC will revert and
reprocess the previous SIP instalments with load or recover the applicable load amount if any of the above mentioned conditions and other terms and conditions
of SIP facility are not fulfilled. The AMC also reserves the right to stop or cancel and / or redeem outstanding units if the investor fails to comply with the SIP criteria
including failure of two consecutive installments or minimum number of installments or minimum investment amount etc..
The investor/s by signing overleaf undertake/s to keep sufficient funds in the funding account on the date of execution of standing instruction. The investor/s
declare/s that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect
information, The investor/s would not hold the Mutual Fund or the Bank responsible if the date of debit to my/ our account happens to be a non business day as
per the Mutual Fund, execution of the SIP will happen on the day of holiday and allotment of units will happen as per the Terms and Conditions listed in the Scheme
Information Document of the Mutual Fund. HDFC Bank shall not be liable for, nor be in default by reason of, any failure or delay in completion of its obligations under
this Agreement, where such failure or delay is caused, in whole or in part, by any acts of God, civil war, civil commotion, riot, strike, mutiny, revolution, fire, flood, fog,
war, lightening, earthquake, change of Government policies, Unavailability of Banks computer system, force majeure events, or any other cause of peril which is
beyond HDFC Banks reasonable control and which has the effect of preventing the performance of the contract by HDFC Bank. The investor/s acknowledge/s that
no separate intimation will be received from HDFC Bank in case of non-execution of the instructions for any reasons whatsoever.

Trust is always the answer

JM FINANCIAL MUTUAL FUND

JM Financial Asset Management Limited


Corporate Office: 502, 5th Floor, A-Wing, Laxmi Towers, Bandra Kurla Complex, Bandra (E), Mumbai 400 051, India.
Tel. No -(022) 3987 7777. Fax No.: (022) 22819518/19 Email: investor@jmfl.com Website: www.JMfinancialmf.com

FORM FOR NOMINATION / CHANGE IN NOMINATION


Folio no. :
I/We hereby nominate the under mentioned person(s) to receive the amount to my/our credit in the event of my/our death in proportion to the percentage(%) indicated against the Name(s) of
the Nominee(s). I/We also understand that all payments and settlements made to such nominee(s) shall be a valid discharge by the AMC / Mutual Fund / Trustee.

Nominee Details
No.

Name & Address of the Nominee /s (upto 3 Nos.)

Date of Birth

Relationship with the first holder

(In case Nominee is minor)

Share (%) (in


multiple of 1%)

Age of the
Nominee

1
2
3

Full Name of Guardian (in case of Minor)


Address of the Guardian

Not Mandatory

Signature of the Nominee /


Guardian (in case of Minor):
Unit holder(s) Name & Signature
No.

Name

Signature

1
2
3

Date :

M M

Place :

Instructions :
1.

The nomination can be made only by individuals applying for / holding units on their own behalf singly or jointly. Non-individuals including Society, Trust, Body Corporate, Partnership Firm, Karta of Hindu Undivided Family, holder of Power
of Attorney cannot nominate. If the units are held jointly, all joint holders will have to sign the nomination form. Nomination shall not be allowed in a folio held on behalf of a minor. Nomination form cannot be signed by Power of attorney
(PoA) holders.

2.

Submission of fresh nomination form if found in order will tantamount to cancellation of existing nomination. Every new nomination for a folio/account will overwrite the existing nomination.

3.

Nomination is registered / modified / changed only at folio level and not at scheme / option / plan level.

4.

The cancellation of nomination can be made only by those individuals who hold units on their own behalf singly or jointly and who made the original nomination.

5.

A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the unitholder. Nomination can also be in favour of the Central Government, State Government, a local authority,
any person designated by virtue of his office or a religious or charitable trust.

6.

The Nominee shall not be a Trust, Society, Body Corporate, Partnership Firm, Karta of Hindu Undivided Family or a Power of Attorney holder. A Non-Resident Indian can be a Nominee subject to the Exchange Control Regulations of RBI, in force,
from time to time.

7.

Nomination in respect of the units stands rescinded upon the transfer of units.

8.

Transfer of units in favour of a Nominee shall be valid discharge by the Asset Management Company against the legal heir.

9.

On cancellation of the nomination, the nomination shall stand rescinded and the Asset Management Company shall not be under any obligation to transfer the units in favour of the Nominee.

10. Investor/s has/have to furnish the ratio of entitlement for each nominee which would always be in multiples of 1%.
11. In the event of investor not allocating in whole numbers, AMC may round off the ratio to the nearest whole number or take its own decision including applying the default option as mentioned below in point no 11.
12. In the event of failure to furnish the percentage (%) allocation, the unit holding will be divided proportionately amongst all nominees on equal basis. However, in case of 3 nominees, the allocation by default will be 34%, 33% & 33%
respectively for each nominee in the sequential order if the investor/s has/have failed to furnish the ratio.
13. In case, the share of individual nominee claimant does not meet with the minimum investment criteria of the scheme concerned, the AMC will settle the claim by redeeming the units and making the paymet at the time of processing the
transmission request.
14.

Nomination is mandatory for new folios/accounts opened by individual. Even those investors who do not wish to nominate must sign separately confirming their non-intention to nominate.

Ragistrar & Transfer Agents:


Karvy Computershare Private limited

Karvy Selenium Tower B, Plot No 31 & 32, First Floor, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad 500 008.
Tel.: (040) 6716 1500 (Board) E-mail: service_jmf@karvy.com
Karvy Branches: Agra: Karvy Computershare Pvt. Ltd. 1st Floor Deepak Wasan Plaza, Behind Holiday Inn Opp Megdoot Furnitures,Sanjay Place, Agra282002 Uttar Pradesh Email: mfsagra@karvy.com Tel.: 9369918603. Ahmedabad: Karvy Computershare Pvt. Ltd 201/202 Shail Opp: Madhusudan House
Navrangpura, Ahmedabad-380006 Gujarat Email: ahmedabadmfd@karvy.com Tel.: 079-26402967/65445550. Ajmer: Karvy Computershare Pvt. Ltd 302, 3rd
Floor, Ajmer Auto Building, Opposite City Power House, Jaipur Road, Ajmer 305 001. Rajasthan Email: mfsajmer@karvy.com Tel.: 0145-5120725/2628055.
Allahabad: Karvy Computershare Pvt. Ltd. RSA Towers, 2nd Floor, Above Sony TV Showroom, 57, S P Marg, Civil Lines, Allahabad-211001. Uttar Pradesh Email:
allahabadmfd@karvy.com Tel.: 9369918605. Ambala: Karvy Computershare Pvt. Ltd 6349, Nicholson Road, Adjacent Kos Hospital ambala Cant Ambala-133001.
Haryana Email: mfsambala@karvy.com Tel.: 9315017301. Amritsar: Karvy Computershare Pvt.Ltd 72-A TaylorS Road, Opp Aga Heritage Club, Amritsar-143001. Punjab Email: mfsamritsar@karvy.com Tel.: 0183-5053802. Anand: Karvy Computershare Pvt.Ltd B-42 Vaibhav Commercial Center, Nr Tvs Down
Town ShowRoom,GridChar Rasta,Anand-380001. Gujarat Email: mfsanand@karvy.com Tel.: 9662020623. Aurangabad: Karvy Computershare Pvt.Ltd Ramkunj Niwas, Railway Station Road, Near Osmanpura Circle, Aurangabad-431005. Maharashthra Email: mfsaurangabad@karvy.com Tel: 0240-2343414. Bangalore: Karvy Computershare Pvt.Ltd 59, Skanda puttanna Road, Basavanagudi, Bangalore-560004. Karnataka Email:bangaloremfd@karvy.com Tel.: 08026600785/26602852/9625. Bareilly: Karvy Computershare Pvt.Ltd 1St Floor, 165, Civil Lines, opp. Hotel Bareilly Palace, Near Railway Station, Bareilly-243001
Uttar Pradesh Email: mfsbareilly@karvy.com Tel.: 9369918607. Baroda: Karvy Computershare Pvt.Ltd Sb-5, Mangaldeep Complex, Opp. Masonic Hall, Productivity Road, Alkapuri, Baroda-390007 Email: Gujarat barodamfd@karvy.com Tel.: 0265-6640870/6640871. Belgaum: Karvy Computershare Pvt.Ltd Cts No
3939/ A2 A1 Above Raymonds Show Room, Beside Harsha Appliances, Club Road, Belgaum-590001. Karnataka Email: mfsbelgaum@karvy.com Tel.: 0831
2402544. Bharuch: Karvy Computershare Pvt.Ltd Shop No 147-148, Aditya Complex, Near Kasak Circle, Bharuch-392001. Gujarat Email: mfsbharuch@karvy.
com Tel.: 02642-225022 Bhilai: Karvy Computershare Pvt.Ltd Shop No -1, First Floor, Plot No -1, Commercial Complex, Nehru Nagar-East, Bhilai-490020.
Chatisgarh Email: mfsbhilai@karvy.com Tel.: 0788-2295999/2295332. Bhopal: Karvy Computershare Pvt.Ltd Kay Kay Business Centre 133, Zone I, Mp Nagar
Above City Bank Bhopal-462011. Madhya Pradesh Email: bhopalmfs@karvy.com Tel.: 0755-4092712/15. Bhubaneswar: Karvy Computershare Pvt.Ltd A/181,
Back Side Of Shivam Honda Show Room, Saheed Nagar - Bhubaneswar-751007 Orissa Email: bhubaneswarmfd@karvy.com Tel.: 0674-6534585. Bokaro: Karvy
Computershare Pvt.Ltd B-1, 1St Floor, City Centre, Sector- 4, Near Sona Chandi Jewellers Bokaro-827004 Jharkhand Email: mfsbokaro@karvy.com Tel.: 06542233330/31/ 9204061959. Burdwan: Karvy Computershare Pvt.Ltd 63 Gt Road Halder Complex 1St Floor - Burdwan-713101 West Bengal Email: mfsburdwan@
karvy.com Tel.: 0342-2665140. Chandigarh: Karvy Computershare Pvt.Ltd SCO 2423-2424, Sector 22-C, Chandigarh - 160022. Email: chandigarhmfd@karvy.
com Tel.: 0172-5101342. Chennai: Karvy Computershare Pvt.Ltd F-11, Akshaya Plaza, 1St Floor 108, Adhithanar Salai Egmore, Chennai-600002 Tamil Nadu
Email: chennaimfd@karvy.com Tel.: 044-42028512/42028513. Cochin: Karvy Computershare Pvt.Ltd Ali Arcade, 1St Floor,Kizhavana Road PanampillyNagar
Near Atlantis Junction Ernakualm-682036 Kerala Email: cochinmfd@karvy.com Tel.: 0484-3000231/3000232. Coimbatore: Karvy Computershare Pvt.Ltd 3rd
Floor, Jaya Enclave, 1056-1057 Avinashi Road, Coimbatore 641 018. Tamil Nadu Email: mfscoimbatore@karvy.com Tel.: 0422 - 4388011/0422 - 4388013/0422
- 4388451/0422 - 4388012/0422 4388014. Cuttack: Karvy Computershare Pvt.Ltd Po - Buxi Bazar, Cuttack, Opp Dargha Bazar Cuttack-753001 Orissa Email:
mfscuttack@karvy.com Tel.: 9238102118. Dehradun: Karvy Computershare Pvt.Ltd Kaulagarh Road Near Sirmaur Marg above Reliance Webworld Dehradun-248001 Uttaranchal Email: dehradunmfd@karvy.com Tel.: 9369918608. Dhanbad: Karvy Computershare Pvt.Ltd 208 New Market 2Nd Floor Bank More Dhanbad-826001 Jharkhand Email: mfsdhanbad@karvy.com Tel.: 0326-6452027. Erode: Karvy Computershare Pvt.Ltd No: 4, Veerappan Traders Complex,
KMY Salai, Sathy Road Opp. Erode Bus Stand Erode-638003 Tamil Nadu Email: mfserode@karvy.com Tel.: 0424-4021212. Faridabad: Karvy Computershare
Pvt.Ltd A-2B, 3rd Floor, Neelam Bata Road, NIT, Nehru Ground, Faridabad-121001 Haryana Email: mfsfaridabad@karvy.com Tel.: 9310448851/ 0129-4181009.
Ghaziabad: Karvy Computershare Pvt.Ltd 1St Floorc-7, Lohia Nagar - Ghaziabad-201001 Uttar Pradesh Email: mfsghaziabad@karvy.com Tel.: 9310448804.
Gorakhpur: Karvy Computershare Pvt.Ltd Above V.I.P. House ajdacent A.D. Girls College Bank Road Gorakpur-273001 Uttar Pradesh Email: mfsgorakhpur@
karvy.com Tel.: 9369918610. Guntur: Karvy Computershare Pvt.Ltd D No 6-10-27,Srinilayam Arundelpet 10/1 Guntur-522002 Andhra Pradesh Email: mfsguntur@karvy.com Tel.: 0863-2339094. Gurgaon: Karvy Computershare Pvt.Ltd Shop No.18, Ground Floor,Sector - 14 Opp. Akd Tower Near Huda Office Gurgaon-122001 Haryana Email: mfsgurgaon@karvy.com Tel.: 9310448806. Guwahati: Karvy Computershare Pvt.Ltd 1st Floor, Bajrangbali Building, Near Bora
Service Station, GS Road, Guwahati 781007 Email: mfsguwahati@karvy.com Tel.: 8811036746. Gwalior: Karvy Computershare Pvt.Ltd 2nd Floor, Rajeev Plaza,
Jayendra Ganj, Lashkar Gwalior. M.P.-474009. Email: mfsgwalior@karvy.com Tel.: 9300004262. Hubli: Karvy Computershare Pvt.Ltd CTC no. 483 / A1/A2,
Ground Floor, Shri Ram Plaza, Behind Kotak Mahindra Bank, Club Road, Hubli- 580029 Email: mfshubli@karvy.com Tel.: 0836-2252444. Hyderabad: Karvy
Computershare Pvt.Ltd KARVY CENTRE 8-2-609/K, Avenue 4, Street No. 1, Banjara Hills, Hyderabad 500 034. Andhra Pradesh Email: mfshyderabad@karvy.
com Tel.: 040-67406120 / 040-67406121. Hyderabad(Gachibowli): KARVY Selenium, Plot No: 31 & 32 Tower B, Survey No.115/22, 115/24, 115/25 Financial
District, Gachibowli, Nanakramguda, Serilimgampally Mandal Hyderabad 500032. Tel:040-3321 5121 /5122/5123. Indore: Karvy Computershare Pvt.Ltd
2nd floor, 203-205 Balaji Corporates, Above ICICI bank, 19/1 New Palasia, Indore 452001 Email: mfsindore@karvy.com Tel.: 0731-4266828/4218902. Jaipur:
Karvy Computershare Pvt. Ltd. S16/A IIIrd Floor Land Mark Building, Opp Jai Club Mahaver Marg C Scheme Jaipur-302001 Rajasthan Email: jaipurmfd@karvy.
com Tel.: 0141-4167714/4167715/17. Jalandhar: Karvy Computershare Pvt.Ltd 1st Floor,Shanti Towers SCO No. 37, PUDA Complex, Opposite Tehsil Complex
Jalandhar City -144001. Punjab Email: mfsjalandhar@karvy.com Tel.: 0181-5094410. Jalgaon: Karvy Computershare Pvt.Ltd 269 Jaee Vishwa, 1st Floor, Above
United Bank of India, Baliram Peth Nr. Kishor Agencies, Jalgaon - 425001. Maharashthra Email: mfsjalgaon@karvy.com Tel.: 0257-2226761. Jammu: Karvy
Computershare Pvt.Ltd 5 A/D Extension 2 Near Panama Chowk Petrol Pump Panama Chowk Jammu-180012 Jammu & Kashmir Email: mfsjammu@karvy.com
Tel.: 0191-2458820/2458818. Jamnagar: Karvy Computershare Pvt.Ltd 136-137-138, Madhav Plaza, Opp. SBI Bank, Jamnagar, Gujarat - 361001. Email: mfsjamnagar@karvy.com Tel.: 0288-2558887. Jamshedpur: Karvy Computershare Pvt.Ltd 2nd Floor, R R Square, SB Shop Area, Near Reliance Foot Print & Hotel
- B/S Park Plaza, Main Road, Bistupur Jamshedpur--831001 Email: jamshedpurmfd@karvy.com Tel.: 0657-6655000/6655003/6655004/6655005/6655006/6655007.
Jodhpur: Karvy Computershare Pvt.Ltd 203, Modi Arcade Chopasni Road - Jodhpur-342001 Rajasthan Email: mfsjodhpur@karvy.com Tel.: 0291-6454590.
Kanpur: Karvy Computershare Pvt.Ltd 15/46, B, Ground Floor Opp : Muir Mills Civil Lines Kanpur-208001 Uttar Pradesh Email: kanpurmfd@karvy.com Tel.:
9369918615. Kolhapur: Karvy Computershare Pvt.Ltd 605/1/4 E Ward, Shahupuri 2Nd Lane Laxmi Niwas Near Sultane Chambers Kolhapur-416001 Maharashthra Email: mfskolhapur@karvy.com Tel.: 0231 2653656. Kolkata: Karvy Computershare Pvt.Ltd 166 A Rashbihari Avenue 2Nd Floor - Opp- Fortis Hospital
Kolkata-700029 West Bengal Email: kolkatamfd@karvy.com Tel.: 033-24635432/24659263. Lucknow: Karvy Computershare Pvt.Ltd 1st Floor, A. A. Complex,
Thaper House, 5 Park Road, Hazratganj, Lucknow - 226001. Uttar Pradesh Email: lucknowmfd@karvy.com Tel.: 9369918600. Ludhiana: Karvy Computershare
Pvt.Ltd Sco - 136 1St Floor AboveAirtel Showroom Feroze Gandhi Market Ludhiana-141001 Punjab Email: mfsludhiana@karvy.com Tel.: 0161-4648747.
Madurai: Karvy Computershare Pvt.Ltd Rakesh towers, 30-C, Ist floor, Bye pass Road, Opp Nagappa motors, Madurai 625010 Tamil Nadu Email: mfsmadurai@
karvy.com Tel.: 0452-2605856. Mangalore: Karvy Computershare Pvt.Ltd Mahendra Arcade Opp Court Road Karangal Padi - Mangalore 575003 Karnataka
Email: mangaloremfd@karvy.com Tel.: 0824-2496289. Margoa: Karvy Computershare Pvt.Ltd 2Nd Floor Dalal Commercial Complex Pajifond MarGao-403601

Goa Email: mfsmargoa@karvy.com Tel.: 0832-2731823. Meerut: Karvy Computershare Pvt.Ltd 1St Floor Medi Centreopp Icici Bank Hapur Road Near Bachha
Park Meerut-250002 Uttar Pradesh Email: mfsmeerut@karvy.com Tel.: 9369918619. Moradabad: Karvy Computershare Pvt.Ltd Om Arcade Parker Road Above
Syndicate Bank,Chowk Tari Khana Moradabad-244001 Uttar Pradesh Email:mfsmoradabad@karvy.com Tel.:9369918620. Mumbai: Karvy Computershare Pvt.
Ltd 24/B, Raja Bahadur Compound Ambalal Doshi Marg, Behind BSE Bldg Fort-400001 Maharashthra Email: mumbaimfd@karvy.com Tel.: 022-66235353.
Mysore: Karvy Computershare Pvt.Ltd L-350,Silver Tower, Ashoka Road Opp.Clock Tower Mysore-570001 Karnataka Email: mfsmysore@karvy.com Tel.: 08212438006. Nagpur: Karvy Computershare Pvt.Ltd Plot No 2/1 House No 102/1 Mata Mandir Road Mangaldeep Appartment Opp Khandelwal Jewellers, Dharampeth
Nagpur-440010 Maharashthra Email: nagpurmfd@karvy.com Tel.: 0712-2533040. Nasik: Karvy Computershare Pvt.Ltd F - 1 Suyojit Sankul, Sharanpur Road,
Nasik, Maharashtra 422002 Email: nasikmfs@kavry.com Tel.: 0253-6611395. Navsari: Karvy Computershare Pvt.Ltd 1/1 Chinmay Aracade Opp Sattapir Rd
Tower Rd Navsari-396445 Gujarat Email: mfsnavsari@karvy.com Tel.: 02637-280367. New Delhi: Karvy Computershare Pvt.Ltd 305 New Delhi House 27 Barakhamba Road - New Delhi 110001. Email: mfsnewdelhi@karvy.com Tel.: 011-43681700/1704. Noida: Karvy Computershare Pvt.Ltd 405,4th Floor,Vishal Chamber, Plot No. 1,Sector-18, Noida-201301(U.P), Uttar Pradesh Email: mfsnoida@karvy.com Tel.: 9310448805. Panipat: Karvy Computershare Pvt.Ltd 1St Floor,
Krishna Tower Above Amertex,G.T. Road, Panipat-132103 Emai: Haryana mfspanipat@karvy.com Tel.: 9315017304. Panjim: Karvy Computershare Pvt.Ltd City
Business Centre, Coelho Pereira Building Room No 18,19 & 20, Dada Vaidya Road, Panjim-403001 Goa Email: panjimmfd@karvy.com Tel.: 0832-2426873
/2426874. Patiala: Karvy Computershare Pvt.Ltd Sco 27 D Chotti Baradari Near Car Bazaar Patiala-147001 Punjab Email: mfspatiala@karvy.com Tel.: 01755004349. Patna: Karvy Computershare Pvt.Ltd 3A, 3Rd Floor Anand Tower Exhibition Road Opp ICICI Bank Patna-800001 Bihar Email: mfspatna@karvy.com
Tel.: 0612-6453098. Pune: Karvy Computershare Pvt.Ltd Mozaic Bldg, CTS No.1216/1, Final, Plot No.576/1 TP, Scheme No.1, F C Road, Bhamburda, Shivaji
Nagar, Pune-411004. Maharashthra Email: punemfd@karvy.com Tel.: 020-30214851/52. Raipur: Karvy Computershare Pvt.Ltd 2 & 3 Lower Level Millenium
Plaza, Room No. Ll 2& 3 Behind Indian Coffee House, Raipur-492001 Chatisgarh Email: mfsraipur@karvy.com Tel.: 0771-4052620. Rajkot: Karvy Computershare Pvt.Ltd 104, Siddhi Vinayak Com. Opp Ramkrishna Ashram Dr Yagnik Road Rajkot Rajkot-360001 Gujarat Email: rajkotmfd@karvy.com Tel.: 281-6545888.
Ranchi: Karvy Computershare Pvt.Ltd Room No 307 3Rd Floor Commerce Tower Beside Mahabir Tower Ranchi-834001 Jharkhand Email: mfsranchi@karvy.
com Tel.: 0651-2331320. Rohtak: Karvy Computershare Pvt.Ltd 1St Floor Ashoka Plaza Delhi Road Rohtak-124001 Haryana Email: mfsrohtak@karvy.com Tel.:
9315017305. Salem: Karvy Computershare Pvt.Ltd No:40, 2nd Floor Brindavan Road Fairlands, Near Perumal Koil, Salem-636016 Tamil Nadu Email: mfssalem@karvy.com Tel.: 0427-4020300. Siliguri: Karvy Computershare Pvt.Ltd Nanak Complex Sevoke Road - Siliguri-734001 West Bengal Email: mfssiliguri@
karvy.com Tel.: 0353-2526393. Surat: Karvy Computershare Pvt.Ltd G-5 Empire State Buliding Nr Udhna Darwaja Ring Road Surat-395002 Gujarat Email: suratmf@karvy.com Tel.: 0261-3042170/3042170. Tirupathi: Karvy Computershare Pvt.Ltd H.No:10-13-425, 1st Floor, Tilak Road, Opp: Sridevi Complex, Tirupati-517501. Email: mfstirupathi@karvy.com Tel.: 0877-6544567. Trichy: Karvy Computershare Pvt.Ltd 60, Sri Krishna Arcade Thennur High Road, Trichy-620017 Tamil Nadu Email: mfstrichy@karvy.com Tel.: 0431-4020227. Trivandrum: Karvy Computershare Pvt.Ltd 2Nd Floor Akshaya Tower
Sasthamangalam Trivandrum-695010 Kerala Email: mfstrivandrum@karvy.com Tel.: 0471-2725728. Udaipur: Karvy Computershare Pvt.Ltd 201-202 Madhav
Chambers Opp GPO, Chetak Circle Udaipur-313001 Rajasthan Email: mfsudaipur@karvy.com Tel.:0294-2429370. Valsad: Karvy Computershare Pvt.Ltd Shop
No 2, Phiroza Corner Opp Next Show Room Tithal Road Valsad-396001 Gujarat Email: mfsvalsad@karvy.com Tel.: 02632-258481. Varanasi: Karvy Computershare Pvt.Ltd D-64/1321St Floor Anant Complex Sigra Varanasi-221010 Uttar Pradesh Email: varanasimfd@karvy.com Tel.: 9369918626. Vijayawada: Karvy
Computershare Pvt.Ltd 39-10-7 Opp : Municipal Water Tank Labbipet Vijayawada-520010 Andhra Pradesh Email: vijayawadamfd@karvy.com Tel.: 0866 6604040/39/32. Visakhapatnam: Karvy Computershare Pvt.Ltd Door No. 48-8-7, Dwaraka Dimond, Ground Floor, Srinagar, Visakhapatnam 530016, Andhra
Pradesh Email: vizagmfd@karvy.com Tel.: 0891-2714125. Warangal: Karvy Computershare Pvt.Ltd 5-6-95, 1 St Floor Opp: B.Ed Collage,Lashkar Bazar Chandra Complex,Hanmakonda, Warangal-506001 Andhra Pradesh Email: mfswarangal@karvy.com Tel.: 0870-2501664.

JM Financial Asset Management Limited


Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025.
Corporate Office: 502, 5th Floor, A - Wing, Laxmi Towers, Bandra Kurla Complex, Mumbai 400 051.
Tel. No.: (022) 6198 7777. Fax No.: (022) 2652 8388 Email: investor@jmfl.com Website: www.jmfinancialmf.com
For further details please contact any of our offices:
BRANCHES/INVESTOR SERVICE CENTERS : AHMEDABAD: 201, SAMEDH complex, Next to Associated Petrol Pump, C. G. Road, Panchvati, Ahmedabad - 380 006. Tel.: (079) 26426620 / 26426630. BANGALORE: 203, 2nd floor, City Centre, Off MG Road, Church Street, Bangalore
560 001 Tel.: (080) 42914221/4242. CHANDIGARH: B-4 Basement, SCO 22, Sector 33 D, Chandigarh - 160020 Tel: (0172) 4346431/4646431
CHENNAI: 2nd Floor, Ruby Regency, Dinrose Estate, Opposite to Tarapore Towers, (Behind HP Petrol Pump) Old No. 69, Anna Salai, Chennai - 600
002. Tel.: (044) 42976767, Fax: (044) 28513026. HYDERABAD: ABK OLBEE Plaza, 8-2-618/8 & 9, 2nd Floor, 204, Road No. 1, Banjara Hills,
Hyderabad 500 034. Tel.: (040) 66664436 / 66780752. INDORE: 129, City Centre, 570 M. G. Road, Opp. High Court, Indore - 452001. Tel.: (0731)
2533344. JAIPUR: 343, 3rd Floor, Ganapati Plaza, MI Road, Jaipur - 302 001. Tel.: (0141) 4002188. KOLKATA: 6, Little Russell Street, 8th Floor,
Kankaria Estate, Kolkata - 700 071. Tel.: (033) 40062958/59/65/67. LUCKNOW: 1st Floor, AA Complex, 5 Park Road, Lucknow - 226 001. Tel.:
(0522) 4026637. LUDHIANA: Office No. 308, SCO 18, Opp. Stock Exchange, Feroze Gandhi Market, Ludhiana - 141 001. Tel.: (0161) 5054519 /
5054520. MUMBAI (BKC): 502, 5th Floor, A - Wing, Laxmi Towers, Bandra Kurla Complex, Mumbai 400 051. Tel: (022) 61987777. MUMBAI
(Prabhadevi): 5th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025. Tel: (022) 61987777. NAGPUR: 204, Khullar Chambers,
Above Bank of Baroda, Munje Chowk, Sita Buldi, Nagpur - 440 012. Tel.: (0712) 6500171 / 72. NASIK: Lower Ground 14, Suyojit Sankul, Behind
HDFC Bank, Sharanpur Road, Nasik - 422 002. Tel.: (0253) 3012824. NEW DELHI: 601, 6th floor, Suryakiran Building, 19 K G Marg, Connaught
Place, New Delhi - 110 001. Tel.: (011) 43616160. PUNE: Office # 304 & 305, 4th Floor, Amit Shreephal Ghole Road, 1187/25 Shivajinagar, Next
to Federal Bank, Pune- 411005. Tel: (020) 30266021/22/23. RAJKOT: 208, Star Chambers, 2nd Floor, Harihar Chowk, Rajkot - 360 001. Tel.:(0281)
2231303. SURAT: 1ST Floor, C 110, International Trade Centre (ITC), Majuragate, Ring Road, Surat-395002 . Tel.: (0261) 2460134.

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Call Toll Free 1800-1038-345


Risk Factors : Mutual fund investments are subject to market risks and there is no assurance or guarantee that the objectives of the
schemes will be achieved. As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Schemes can go
up or down depending on the factors and forces affecting the capital markets. Past performance of the Sponsor/AMC/Schemes of JM Mutual
Fund does not indicate the future performance of the schemes of JM Financial Mutual Fund. The sponsor is not responsible or liable for any loss
resulting from the operation of the fund beyond the initial contribution made by them of an aggregate amount of Rupees One lac towards setting up of
the Mutual Fund, which has been invested in JM Equity Fund. The names of the schemes do not in any manner indicate either the quality of the
schemes or their future prospects or returns. Investors in the Plans are not being offer any guaranteed/indicative returns. Please see Risk
Factors, Scheme Specific Risk Factors and Special Consideration and Right to limit redemptions in the Scheme Information Document. Please
refer the Scheme Information Document of the Schemes, which can be obtained free of cost from any of the JM Financial Mutual Fund Investor
Service Centres or Distributors. Please read the Scheme Information Document of the respective scheme carefully before investing.
NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the SID has
been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to
refer to the SID for the full text of the Disclaimer Clause of NSE.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

SPONSOR: JM Financial Ltd. TRUSTEE: JM Financial Trustee Company Private Limited CIN: U65991MH1994PTC078880.
Registered Office: 141, Maker Chambers III, Nariman Point, Mumbai - 400 021. REGISTRAR: Karvy Computershare Private Limited.
INVESTMENT MANAGER: JM Financial Asset Management Limited (Formerly known as JM Financial Asset Management Private Ltd.), Corporate Office: 502, 5th Floor, A
Wing, Laxmi Towers, Bandra - Kurla Complex, Bandra (E), Mumbai 400 051. CIN: U65991MH1994PLC078879. E-mail: investor@jmfl.com, Website: www.jmfinancialmf.com
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025. Tel. : (022) 6198 7777 Fax : (022) 2652 8388
This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme/Mutual
Fund, due diligence certificate by the AMC, Key Personnel, investors rights & services, risk factors, penalties & pending litigations, associate transactions etc. investors should,
before investment, refer to the Scheme Information Document (SID) and Statement of Additional Information (SAI) available free of cost at any of the Investor Service Centres
or distributors or from the website www.JMFinancialmf.com. The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual
Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been
approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM.
The date of this Key Information Memorandum is June 29, 2015.

JM SCHEMES RECKONER
Minimum criteria for Investment & Redemption
For Equity schemes: As mentioned in the reckoner table for normal transactions other than through SIP/STP. Additional Purchase : Rs. 1,000/- or any amount thereafter in all schemes except JM Tax Gain Fund. In case
of JM Tax Gain Fund, additional purchase is in multiples of Rs. 500/- each. Repurchase : Minimum redemption from existing Unit Accounts for normal transactions other than through STP/SWP would be a) Rs. 500 and
any amount thereafter OR b) 50 units or any number of units thereafter subject to keeping a minimum balance of 500 units or Rs. 5000/- whichever is less. c) for all the units in the folio for the respective plan
if the available balance is less than Rs. 500/- or less than 50 units on the day of submission of valid redemption request. For Direct plan, please see subsequent pages.
FOR DEBT SCHEMES: Minimum Investment Amount: Rs. 5000/- and any amount thereafter. Additional Purchase Amount: Rs. 1000/- and any amount thereafter. For Direct plan, please see subsequent pages.
Reckoner and Default Options: In case an investor fails to specify his preference of Plans/Sub- Plans/Options/Sub-Options, in the below mentioned schemes, the default Plans/Sub-Plans/Options/Sub-Options
for purchase transactions would be as under.

EQUITY SCHEMES
Currently available facilities
Sr. no.

Schemes

Allotment Date

Plan

Default Plan/Option/Sub-Option

Options

Sub Options

Dividend

Payout / Reinvestment

Default
Plan

Default
Option
Dividend

Default Sub
Option
Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Bonus

Principal units

Dividend

Reinvestment

Exit Load
@@@

Lock-in Periods @@@

Redemption
Time#

0.50%

30 Days

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

Growth
Bonus
Annual Bonus
1

JM - Arbitrage
Advantage Fund

July 18, 2006

Principal units
Principal units

Half Yearly Bonus

Principal Units

Quarterly Bonus

Principal Units

Dividend

Payout / Reinvestment

Direct

Growth
(Direct)

Bonus
Annual Bonus
Half Yearly Bonus

Principal units
Principal units
Principal Units

Quarterly Bonus

Principal Units

Dividend

Payout / Reinvestment

Growth
Bonus

Principal units

Half Yearly
Dividend*

Payout / Reinvestment

Annual Dividend*

JM Balanced Fund

April 1, 1995

Principal units

Annual Bonus

Half Yearly Bonus

Principal Units

Quarterly Bonus

Principal Units

Monthly
Dividend*

Payout / Reinvestment

Quarterly
Dividend*

Payout / Reinvestment

Dividend

Payout / Reinvestment

Direct

Growth
Bonus

(Direct)

Principal units

Annual Bonus

Principal units

Half Yearly
Dividend*

Payout / Reinvestment

Annual Dividend*
Half Yearly Bonus

Principal Units

Quarterly Bonus

Principal Units

Monthly Dividend*

Payout / Reinvestment

Quarterly
Dividend*

Payout / Reinvestment

JM Basic Fund

June 2, 1997
(Direct)

JM Core 11 Fund

March 5, 2008
(Direct)

JM Equity Fund

April 1,1995

(Direct)

JM Multi Strategy
Fund

JM Tax Gain Fund

September 23,
2008

(Direct)

March 31,2008
(Direct)

Dividend
Growth
Dividend
Growth
Dividend
Growth
Dividend
Growth
Dividend
Growth
Monthly Dividend$
Quarterly
Dividend$
Half Yearly
Dividend$
Annual Dividend$
Dividend
Growth
Monthly Dividend$
Quarterly
Dividend$
Half Yearly
Dividend$
Annual Dividend$
Dividend
Growth
Dividend
Growth
Dividend
Growth
Dividend
Growth

Payout / Reinvestment
Payout / Reinvestment

Growth

Reinvestment

Direct
Growth

Reinvestment

Growth

Reinvestment

Growth

Reinvestment

Payout / Reinvestment

Dividend

Reinvestment

Payout / Reinvestment

Dividend

Reinvestment

Dividend

Reinvestment

Dividend

Reinvestment

Growth

Reinvestment

Payout / Reinvestment
Payout / Reinvestment

Payout / Reinvestment

Direct

Direct

Payout / Reinvestment

Payout / Reinvestment
Payout / Reinvestment

Direct
Growth

Payout

1.00%

3 Months

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

1.00%

3 Months

T+3 Business
Days

NIL

&&

T+3 Business
Days

Reinvestment

Growth
Direct

Payout

Payout
Growth

&& JM Tax Gain Fund :- The scheme falls in the ELSS category and is eligible for tax benefits under section 80C of Income Tax Act. There is a lock-in period of 3 years under the Scheme. # AMC would
adhere to the aforesaid service standards for redemption payments on best efforts basis under normal circumstances subject to the overall 10 business days as stipulated by SEBI. *The starting NAV for
Monthly, Quarterly, Half yearly and Annual dividend options will be the NAV of the corresponding dividend option of the respective plans of the Scheme, on the day of first purchase in the respective options
as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated and published for each of the said options. Under these options, the Trustees
of the Mutual Fund reserve the right to declare monthly, quarterly, half yearly and annual dividend in the Scheme, subject to availability of distributable surplus. $ In case of JM Equity Fund: The starting NAV
for Monthly, Quarterly, Half yearly and Annual dividend options under JM Equity Fund stated above will be the NAV of the corresponding earliest dividend option of the respective scheme, on the day of first
purchase in the respective options as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated and published for each of the said options.
Under these options, the Trustees of the Mutual Fund reserve the right to declare dividend in the respective dividend options of the Scheme, subject to availability of distributable surplus. It is clarified that the
minimum investment is applicable at the respective Options/ Sub-options level i.e. Growth, Dividend and will be considered after taking into account permissible DD charges..
Plan(s) / Option(s) available for fresh subscription
Sr.
no.

Type of
Scheme

Schemes

Plans

Options

Sub Options

Daily Dividend

Reinvestment

Weekly Dividend
Quarterly Dividend

Default
Plan^

Reinvestment /
Payout$$
Payout$$ /
Reinvestment

Default Option

Default Sub
Option

Daily Dividend

Reinvestment

Exit Load
@@@

Lock-in Periods
@@@

Redemption
Time#

NIL

N/A

T+1 Business
Day

0.25%

35 Days

T+1 Business
Day

Growth
JM High
Liquidity Fund

Bonus

Principal units

Daily Dividend

Reinvestment

Weekly Dividend
(Direct)

Quarterly Dividend
Bonus
Daily Dividend
Growth
Bonus
Half Yearly Bonus

Reinvestment /
Payout$$
Payout$$ /
Reinvestment

Growth

Liquid

Monthly Dividend$

JM Floater
Short Term
Fund
(Direct)

Daily Dividend
Growth
Bonus
Half Yearly Bonus
Monthly Dividend$

Principal units

Principal units
Reinvestment

Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Direct

Principal units

Principal units
Payout/
Reinvestment
Reinvestment

Principal units
Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Principal units
Payout/
Reinvestment

Principal units
Daily Dividend

Reinvestment

Plan(s) / Option(s) available for fresh subscription


Sr.
no.

Type of
Scheme

Schemes

Plans

Options

Sub Options

Daily Dividend
Weekly Dividend

Reinvestment

Dividend

Reinvestment /
Payout$$

Growth
Bonus
Half Yearly Bonus

Monthly Dividend$

JM Floater
Long Term
Fund

Daily Dividend
Weekly Dividend
Dividend
(Direct)

Debt

JM Income
Fund
(Direct)

Default Sub
Option

Daily Dividend

Reinvestment

Principal units

Reinvestment
Reinvestment /
Payout$$
Principal units

Half Yearly Bonus

Principal Units

Growth
Principal units

Quarterly Dividend

Payout$$ /
Reinvestment

Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Daily Dividend

Reinvestment

Growth

Reinvestment
Principal units

Growth

Growth
Bonus

Lock-in Periods
@@@

Redemption
Time#

NIL

N/A

T+1 Business
Day

NIL

N/A

T+1 Business
Day

NIL

N/A

T+1 Business
Day

0.50%

182 Days

T+2 Business
Day

NIL

NA

T+1 Business
Day

Principal units

Payout /
Reinvestment
Payout$$ /
Reinvestment

Bonus

Exit Load
@@@

Principal units

Payout /
Reinvestment

Bonus

Quarterly Dividend

Default Option

Growth

Monthly Dividend$

Default
Plan^

Principal units

Reinvestment
Principal units

Dividend-Monthly
Dividend

Dividend-Quarterly
Dividend

Payout$$ /
Reinvestment

Monthly Dividend Payout$$

Dividend-Annual
Dividend
Growth

Bonus

JM MIP Fund

Principal units

Dividend-Monthly
Dividend

(Direct)

Dividend-Quarterly
Dividend

Principal units

Direct

Payout$$ /
Reinvestment

Monthly Dividend Payout$$

Dividend-Annual
Dividend
Growth
Bonus

Principal units

Principal units

Daily Dividend
Weekly Dividend
Regular

Reinvestment

Daily Dividend

Fortnightly Dividend

Auto
Reinvestment

Growth
6

Debt

Bonus

JM Money
Manager Fund

Principal units

Daily Dividend
Weekly Dividend
(Direct)

Reinvestment

Fortnightly Dividend

Principal units

Super Plus
Daily Dividend

Auto
Reinvestment

Growth
Bonus

Principal units

Principal units

Plan(s) / Option(s) available for fresh subscription


Sr.
no.

Type of
Scheme

Schemes

Plans

Options

Sub Options

Default
Plan^

Default Option

Default Sub
Option

Daily Dividend

Auto
Reinvestment

Daily Dividend
Weekly Dividend
Super

Reinvestment

Fortnightly Dividend

Exit Load
@@@

Lock-in Periods
@@@

NIL

N/A

NIL

N/A

Redemption
Time#

Growth
Bonus

Principal units

Principal units

Daily Dividend
Weekly Dividend
(Direct)

Reinvestment

Daily Dividend

Fortnightly Dividend
Growth

JM Money
Manager Fund

Bonus

Principal units

Super Plus

Principal units

Daily Dividend
Weekly Dividend
Super Plus

Debt

Auto
Reinvestment

Reinvestment

Daily Dividend

Fortnightly Dividend

Auto
Reinvestment

Growth
Bonus

Principal units

Principal units

Daily Dividend
Weekly Dividend
(Direct)

Reinvestment

Daily Dividend

Fortnightly Dividend

Auto
Reinvestment

T+1 Business
Day

Growth
Principal units
Reinvestment

Dividend

Payout$$ /
Reinvestment

Principal units

Growth

JM Short Term
Fund

Bonus
Daily Dividend

(Direct)

Daily Dividend

Reinvestment

Dividend

Payout$$ /
Reinvestment

Growth

Dividend
Reinvestment

0.25%

30 Days

Growth

Reinvestment

NIL

N/A

T+1
Business Days

Growth
Quarterly Dividend
Monthly Dividend^
Half Yearly Dividend^

Payout$$ /
Reinvestment

Direct

Annual Dividend^
Growth
8

Gilt

Bonus

JM G Sec Fund

Principal units

Quarterly Dividend
Monthly Dividend^
(Direct)

Half Yearly Dividend^

T+1 Business
Day

Payout$$ /
Reinvestment

Annual Dividend^
Growth
Bonus

Principal units

# AMC would adhere to the aforesaid service standards for redemption payments on best efforts basis under normal circumstances subject to the overall 10 business days as stipulated by SEBI. @@@
The exit load shown in the above table are applicable for allotment of units for investment made through fresh purchases/switch-in/shift-in or through respective SIP/STP/SWP Instalments out of the fresh
registration effected during the period when above exit load rates are applicable. The exit load are subject to change at any time. Hence, all Investors are advised to check the current exit load from the nearest
Investor Service Centers before investment. In case, the investor does not mention the name of the Plan/ Option/ Sub-option/or wherever there is an ambiguity in choice of Plan/ Option/ Sub-option opted
for purchase/ switch application(s), the AMC/ Registrar may allot the units as per default Plans/ Options/ Sub-options, if no clarification letter is provided by the investor on the transaction date. However, in
case of fresh purchase application, the AMC/ Registrar at its discretion may allot the units based on the Plan/ Option/ Sub-option appearing on the respective payment instrument. In case, there is complete
ambiguity regarding the Plans/ Options/ Sub-options, the application will be treated as invalid and will be summarily rejected. In case of purchase transactions, where there is a mismatch in the amounts on
the Transaction Slip / Application Form and the payment instrument / credit received, the AMC may at its discretion allot the units for the lesser of the two amounts and refund / utilize the excess, if any, for any
other transaction submitted by the same investor, subject to the fulfillment of other regulatory requirements for the fresh transaction.
Note: Dividend/Bonus shall be declared at the discretion of the Trustee subject to the availability of distributable profits as compiled in accordance with SEBI (Mutual Funds) Regulations, 1996. $$ No dividend
under Dividend Plan shall be distributed in cash even for those unitholders who have opted for payout where such dividend on a single payout is less than Rs.100/-. Consequently, such dividend (less than
Rs.100/-) shall be compulsorily re-invested except under JM Tax Gain Fund as there is no dividend reinvestment option under the scheme.
$The starting NAV for the monthly dividend options under JM Floater Long Term Fund and JM Floater Short Term Fund stated above will be the NAV of the corresponding dividend option of the respective
plans of the schemes, on the day of first purchase in the respective options as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated
and published for each of the said options. Under these options, the Trustees of the Mutual Fund reserve the right to declare monthly dividend in the Schemes, subject to availability of distributable surplus.
^ In case of JM G-Sec Fund: The starting NAV for Monthly, Half yearly and Annual dividend options under JM G-Sec Fund stated above will be the NAV of the corresponding earliest dividend option of the respective
scheme, on the day of first purchase in the respective options as per applicable SEBI guidelines on uniform cut-off timings for applicability of NAV. Thereafter, separate NAVs will be calculated and published for
each of the said options. Under these options, the Trustees of the Mutual Fund reserve the right to declare dividend in the respective dividend options of the Scheme, subject to availability of distributable surplus.

Name(s) of the Scheme(s)

JM Equity Fund

JM Multi Strategy Fund

Type of Scheme

An open-ended growth scheme

An open ended equity oriented scheme

Investment Objective

To provide optimum Capital growth and appreciation.

Investment Strategy

JM Equity Fund seeks to invest a substantial portion of its portfolio in equity and equity
related instruments. Under normal circumstances, around 80% of the corpus shall
be deployed in such securities and the balance in debt/money market instruments.
However, whenever the valuations of securities rise in a sharp manner, the AMC will
take advantage of trading opportunities presented and in such a scenario, the Fund
will have a high turnover rate.

Asset Allocation Pattern of the


Scheme

Type of Instruments

To provide capital appreciation by investing in equity and equity related securities using
a combination of strategies
However, there can be no assurance that the investment objectives of the Scheme will
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.
be realized. The Scheme does not guarantee/indicate any returns.

Normal Allocation
(% of net assets)

Equity

Risk Profile

80% to 100%

Debt, Money market and short term debt


inst maturing within one year

High
Low

0% to 20%

The notional value of derivatives shall not exceed the AUM of the scheme.

The Scheme proposes to invest primarily in equities and equity related securities using
a combination of strategies. Depending on the prevailing market conditions, the Scheme
will either adopt the growth or value style of investing. During benign market conditions,
the Scheme will act like an aggressive growth fund with a concentrated portfolio of say
25 30 stocks with a targeted portfolio beta of greater than 1 whereas in a bearish
market the Scheme will have a low volatility conservative portfolio of larger number
of stocks in the range of 40 to 60 stocks with a targeted portfolio beta of less than 1.
Type of Instruments

Normal Allocation
(% of net assets)

Risk Profile

65% to 100%

Medium to
High

Equity & equity related instruments


(including equity derivatives)**

Money market instruments / debt securities


Low to
(including securitized debt* to the extent of
0% to 35%
Medium
20%)
**The notional value of derivatives shall not exceed the AUM of the scheme.
* excluding foreign securitized debt.
The AMC intends to invest in derivative instruments in accordance with the SEBI
Regulations, as and when opportunities arise in the derivatives markets. The investment
in derivatives will be broadly in line with the investment objective of the Scheme.

Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth,


Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth, Monthly
Dividend (Payout & Reinvestment sub-option), Quarterly Dividend (Payout &
Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth,
Reinvestment sub-option), Half Yearly Dividend (Payout & Reinvestment sub-option)
and Annual Dividend (Payout & Reinvestment sub-option)
Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth, Monthly
Dividend (Payout & Reinvestment sub-option), Quarterly Dividend (Payout &
Reinvestment sub-option), Half Yearly Dividend (Payout & Reinvestment sub-option)
and Annual Dividend (Payout & Reinvestment sub-option)

Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 2


No. of Units

Refer JM SCHEMES RECKONER on page 2

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

BSE Sensex

BSE 500 Index

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Sanjay Chhabaria & Chaitanya Choksi

Sanjay Chhabaria

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Returns
JM Equity Fund
BSE Sensex

Returns
1 year
3 years
5 years
JM Multi Strategy Fund
48.71
21.85
8.74
BSE 500 Index
33.19
17.78
9.81
* Date of inception = Date of allotment i.e. 23.09.2008

1 year
44.17
24.89

3 years
19.88
17.10

5 years
9.96
9.78

Since inception*
9.02
11.33

* Date of inception = Date of allotment i.e. 01.04.1995

Since inception*
12.75
12.28

Returns
1 year
Since inception*
JM Multi Strategy Fund (Direct)
49.77
23.79
BSE 500 Index
33.19
17.80
* Date of inception = 01.01.2013
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained
with reinvestment of dividends (if any). Past performance may or may not be sustained in future.
in future.
Absolute Returns for each financial year for the last 5 years
Absolute Returns for each financial year for the last 5 years
JM Mul Strategy Fund Bench Mark BSE 500
Returns
JM Equity Fund (Direct)
BSE Sensex

1 year
45.04
24.89

JM Equity Fund

50.00

Since inception*
22.50
17.20

60.00

Bench Mark BSE Sensex

50.00

% Returns

% Returns

40.00
30.00
20.00
10.00

30.00
20.00
10.00
0.00

0.00
10.00

40.00

2014 2015

2013 2014

2012 2013

2011 2012

2014 2015

2010 2011

2013 2014

2012 2013

2011 2012

2010 2011

10.00
20.00

20.00

Entry Load

NIL

NIL

Exit Load*

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed /
switched-out within 3 months of transfer/ allotment of units in normal transactions/ allotment
of units of respective installments in SIP/ STP/ SWP transactions.

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.93%, Direct: 2.32%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.83%, Direct: 2.16%

No. of Folios as on 31.03.2015

11,013

52,880

Quarterly Avg. AUM (In Crores) 33.22


Jan 15 to Mar 15

151.72

Name(s) of the Scheme(s)

JM Core 11 Fund

JM Basic Fund

Type of Scheme

An open ended equity oriented scheme

An open-ended sector scheme

Investment Objective

To provide long-term growth by investing predominantly in a concentrated portfolio of


equity / equity related instruments of companies.
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.

To provide capital appreciation to its Unitholders through judicious deployment of the


corpus of the Scheme in sectors categorized under basic industry in the normal
parlance and in context of the Indian economy, including but not limited to, energy,
petrochemicals, oil & gas, power generation & distribution, electrical equipment
suppliers, metals and building material. The fund would continue to remain open-ended
with a sector focus.
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

The Scheme will have a concentrated portfolio with not more than 11 stocks in the
portfolio with each stock being invested to the extent of 9.09% of the NAV of the Scheme.
The portfolio will be rebalanced on a fortnightly basis so as to prevent any one stock
going above the targeted concentration range. To prevent stagnancy of the portfolio, the
portfolio will be reviewed on a half yearly basis whereby some stocks would be replaced.

Under normal circumstances, the corpus would be invested in equities and equity type
securities categorized under basic industry in the normal parlance and in context of
the Indian economy, including but not limited to, energy, petrochemicals, oil & gas,
power generation & distribution and electrical equipment suppliers, metals and building
materials. The fund would continue to remin open-ended with a sector focus. Exposure
of investment in individual scrip if part of the Sectoral Index shall not be restricted to
10% of NAV as Clause 10 of Seventh Schedule of SEBI Regulations has clarified that
the limit of 10 percent shall not be applicable for investments in index fund or sector
or industry specific scheme.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

65% to 100%

Medium to High

0% to 35%

Low to Medium

Equity and equity related securities#


Money Market Instruments / Debt

The Scheme will not invest in securitized debt and Foreign Securities.
# Exposure to derivatives would be capped at 50 % of equity portfolio of the Scheme.
The cumulative gross exposure through equity, debt and derivative positions will not
exceed 100% of the net assets of the Scheme. The Trustee may, from time to time,
pending deployment of funds of the Scheme in securities in terms of the investment
objective of the Scheme, invest the funds of the Scheme in short-term deposits of
scheduled commercial banks in accordance with SEBI Circular No. SEBI/IMD/CIR
No. 1/91171/07 dated April 16, 2007, as amended.

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

80% to 100%

High

Debt securities & Money market


instruments

0% to 20%

Low

Securitised Debt

0% to 20%

Low

Equity & equity related instruments


(including equity derivatives)

Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal. Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth,


Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth,

Normal Plan: Dividend (Payout & Reinvestment sub-option) & Growth,


Direct Plan: Dividend (Payout & Reinvestment sub-option) & Growth,

Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 2


No. of Units

Refer JM SCHEMES RECKONER on page 2

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

BSE Sensex

BSE 200

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Asit Bhandarkar & Chaitanya Choksi

Asit Bhandarkar

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Returns

1 year

3 years

5 years

Since inception*

JM Core 11 Fund

41.67

19.53

5.67

(7.25)

BSE Sensex Index

24.89

17.10

9.78

7.70

Returns
1 year
3 years
5 years
JM Basic Fund
49.24
20.47
3.36
BSE 200
31.93
17.89
9.96
* Date of inception = Date of allotment i.e. 02.06.1997

* Date of inception = Date of allotment i.e. 05.03.2008


Returns
1 year
Since inception*
JM Core 11 Fund (Direct)
42.76
21.05
BSE Sensex Index
24.89
17.20
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with
reinvestment of dividends (if any). Past performance may or may not be sustained in
future. Absolute Returns for each financial year for the last 5 years
JM Core 11 Fund

Since Inception*
17.33
13.56

Returns
1 year
Since Inception*
JM Basic Fund (Direct)
50.27
19.88
BSE 200
31.93
17.87
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with
reinvestment of dividends (if any). Past performance may or may not be sustained in
future. Absolute Returns for each financial year for the last 5 years
JM Basic Fund

Bench Mark BSE Sensex

Bench Mark BSE 200 Index

60.00

50.00

50.00
40.00

% Returns

40.00

% Returns

30.00
20.00

30.00
20.00
10.00

10.00

0.00
0.00
2014 2015

Entry Load

NIL

2013 2014

2012 2013

2011 2012

10.00

2010 2011

2014 2015

10.00

20.00

20.00

30.00

NIL

2013 2014

2012 2013

2011 2012

2010 2011

Exit Load*

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015 :
Normal: 2.91%, Direct: 2.08%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.81%, Direct: 2.15%

No. of Folios as on 31.03.2015

4,191

81,027

Quarterly Avg. AUM (In Crores) Jan 15 to Mar 15

41.30

172.79

Name(s) of the Scheme(s)

JM Tax Gain Fund

JM Balanced Fund

Type of Scheme
Investment Objective

An Open-Ended Balanced Scheme


To provide steady current income as well as long term growth of capital.

Investment Strategy

An Open-Ended Equity Linked Savings Scheme


To generate long-term capital growth from a diversified and actively managed portfolio
of equity and equity related securities and to enable investors a deduction from total
income, as permitted under the Income Tax Act, 1961 from time to time. However, there
can be no assurance that the investment objectives of the Scheme will be realized.
The Scheme does not guarantee/indicate any returns.
The Mutual Fund adopts a scientific approach to investments. Securities are selected
for various funds by the fund managers based on a continuous study of trends in
industries and companies, including management capabilities, global competitiveness,
earning power, growth / payout features and other relevant investment criteria,
which would, inter-alia include evaluation of the outlook of the economy, exposure
to various industries and geographical regions, evaluation of the intrinsic worth of
specific opportunities such as primary market transactions, private placements etc.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Risk Profile of the Scheme


Plans and Options

Normal Allocation (%
of net assets)

Risk Profile

Equity and Equity related securities

80% to 100%

Medium to High

Money Market Instruments / Debt

0% to 20%

Low to Medium

In accordance with the ELSS notification of November, 2005, the Funds collected under
the Scheme shall be invested in equities, cumulative convertible preference shares
and fully convertible debentures and bonds of companies. Investment may also be
made in partly convertible issues of debentures and bonds including those issued
on rights basis subject to the condition that, as far as possible, the non-convertible
portion of the debentures so acquired or subscribed, shall be disinvested within a
period of twelve months. The scheme falls in the ELSS category and is eligible for
Tax Benefits under section 80C of Income Tax Act, 1961.
Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Normal Plan: Dividend (Payout) & Growth,


Direct Plan: Dividend (Payout) & Growth,

Applicable NAV

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 3


No. of Units
Dispatch of Repurchase /
Details are set out in subsequent pages.
Redemption request
Benchmark Index
BSE 500 Index
Dividend Policy
Details are set out in subsequent pages.
Name of the Fund Manager
Sanjay Chhabaria & Chaitanya Choksi
Performance of the Scheme
Compounded annualized returns (%) of Growth option as on March 31, 2015.
Compounded annualized
Returns
1 Year
3 Years
5 Years
Since Inception*
returns
JM Tax Gain Fund
47.89
22.97
10.57
2.25
BSE 500 Index

33.19

17.78

9.81

8.71

* Date of inception = Date of allotment i.e. 31.03.2008


Returns
JM Tax Gain Fund (Direct)
BSE 500 Index

1 Year
48.73
33.19

Since Inception*
25.37
17.80

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.
In order to stabilize equity volatility, JM Balanced Fund seeks a judicious mix of debt
securities in its portfolio. The scheme, under normal circumstances, will seek to invest
upto 65% of its assets in equity markets and the balance in debt and money market
securities.The fund, while at all times emphasizing on a long term investment approach,
will take advantage of the trading opportunities that present themselves from time to
time because of inefficiencies in securities market with a view to booking short term
profits Portfolio turnover will therefore depend upon the circumstances prevalent at
any time. However, this allocation is not absolute and the fund manager may take a
defensive view on the equity markets and reallocate the assets for a short term period.
Due to market fluctuations, if the equity component of the Portfolio goes above 75%, the
fund manager shall balance the Portfolio in order to bring down the equity component.
Type of Instruments
Equity & Equity related
instruments

Normal Allocation (%
of net assets)

Risk Profile

65% to 75%

Medium to High

Debt securities (including fixed


income derivatives and securitized
25% to 35%
Low to Medium
debt*) and money market
instruments
The notional value of derivatives shall not exceed the AUM of the scheme.
* Allocation in securitized debt will not exceed 10% of the net assets

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.
Normal Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus (Principal
units sub-option), Annual Bonus (Principal units sub-option), Monthly Dividend (Payout
& Reinvestment sub-option), Quarterly Dividend (Payout & Reinvestment sub-option),
Half Yearly Dividend (Payout & Reinvestment sub-option) and Annual Dividend (Payout
& Reinvestment sub-option), Half Yearly Bonus (Principal units sub-option), Quarterly
Bonus (Principal units sub-option).
Direct Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus (Principal
units sub-option), Annual Bonus (Principal units sub-option), Monthly Dividend (Payout
& Reinvestment sub-option), Quarterly Dividend (Payout & Reinvestment sub-option),
Half Yearly Dividend (Payout & Reinvestment sub-option) and Annual Dividend (Payout
& Reinvestment sub-option), Half Yearly Bonus (Principal units sub-option), Quarterly
Bonus (Principal units sub-option).
Details are set out in subsequent pages.
Refer JM SCHEMES RECKONER on page 2
Details are set out in subsequent pages.
CRISIL Balanced Fund Index (CBFI)
Details are set out in subsequent pages.
Sanjay Chhabaria
Compounded annualized returns (%) of Growth option as on March 31, 2015.
Returns

1 Year

3 Years

5 Years

Since Inception*

JM Balanced Fund

32.42

20.18

12.28

12.94

CBFI
22.53
14.55
9.74
* Date of inception = Date of allotment i.e. 01.04.1995

NA

Returns

1 Year

Since Inception*

JM Balanced Fund (Direct)


CBFI

33.63
22.53

24.81
14.89

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

Absolute Returns for each financial year for the last 5 years

Absolute Returns for each financial year for the last 5 years
JM Tax Gain Fund

Bench Mark BSE 500

JM Balanced Fund

60.00

30.00

40.00

25.00

30.00

20.00

20.00
10.00
0.00
2014 2015

Entry Load

Bench Mark Crisil Balanced Fund Index

35.00

50.00

% Returns

% Returns

Performance of the Scheme


Compounded annualized
returns

2013 2014

2012 2013

2011 2012

15.00
10.00
5.00
0.00

2010 2011

10.00

5.00

20.00

10.00

2014 2015

NIL

2013 2014

2012 2013

2011 2012

2010 2011

NIL

Exit Load*

Exit Load is NIL. The scheme falls in the ELSS category and is eligible for Tax Benefits
under section 80C.

1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
/ switched-out within 3 months of transfer/ allotment of units in normal transactions/
allotment of units of respective installments in SIP/ STP/ SWP transactions.

Recurring expenses
[% of Net Assets]
No. of Folios as on 31.03.2015

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.90%, Direct: 2.11%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.24%, Direct: 1.19%

15,127

2,462

Quarterly Avg. AUM (In Crores) 34.04


Jan 15 to Mar 15

1,600.97

Name(s) of the Scheme(s)

JM Arbitrage Advantage Fund

JM Short Term Fund

Type of Scheme

An open-ended equity oriented scheme

An Open-Ended Income scheme

Investment Objective

To generate income through arbitrage opportunities emerging out of mis-pricing


between the cash market and the derivatives market and through deployment of
surplus cash in fixed income instruments.
However, there can be no assurance that the investment objective of the scheme will
be realized. The scheme does not guarantee/indicate any returns.

To generate regular returns and high level of liquidity with low risk strategy and capital
appreciation / accretion through investment in debt instruments and related securities
besides preservation of capital.
However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

JM Financial Mutual Fund adopts a scientific approach to investments. Securities


are selected for various funds by the fund managers based on a continuous study
of trends in industries and companies, including management capabilities, global
competitiveness, earning power, growth features and other relevant investment criteria.
The Fund Manager would identify opportunities for mis-pricing and execute the deals
simultaneously in both the markets. In terms of the SEBI guidelines the scheme shall
not short sell in the cash market at all times. Due to mispricing between the cash
and the underlying derivative security, the fund manager shall deploy investments
in securities accordingly.

The investment focus of the scheme is to achieve the investment of the scheme
through investments in a combination of debt and money market instruments having
varied yields and maturity profile. The scheme is being positioned as a product having
the essence of both debt and money market schemes. As such the product is being
positioned as intervening product between the long-term debt scheme and short-term
cash/liquid scheme. Further, the composition of maturity profile of the instruments may
vary substantially from time to time depending upon the changes due to purchase
and repurchase of units.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Normal Allocation (%
of net assets)
65% to 80%

Risk Profile

Equity & Equity related instruments


Medium to High
Derivatives including stock futures
65% to 80%
Medium to High
and stock options #
Money Market Instruments / Debt* /
20% to 35%
Medium to High
Fixed Income Derivatives
# The notional value exposure in derivatives securities would be reckoned for the
purposes of the specified limits.
*Including securitized debt upto a maximum of 30% of net assets of this scheme.
Debt instruments will include Government securities, corporate debentures, bonds,
promissory notes, money market instruments, pass-through obligations, asset backed
securities / securitized debt and other possible similar instruments.
In line with the provisions of the SEBI circular no. DNPD/Cir-29/2005 dated September
14, 2005 duly amended by circular no. DNPD/Cir-30/2006 dated January 20, 2006 by
enumerating the guidelines for participation in Derivatives, the scheme shall execute
transactions in the derivatives markets.
The maximum derivative position will not exceed 80% of the portfolio (i.e. net assets
including cash). The above limits shall be in line with the investment objective of
the scheme.

Type of Instruments

Proportion % of corpus
Min

Likely

Max upto

Risk
Profile

20

80

100

Low

Debt, Money Market Instruments


with residual average maturity of
equal to or less than 367 days

Debt, Money Market Instruments


with residual average maturity of
20
100
equal to or more than 367 days*
* Including securitized debt 0% - 70% of net assets of this scheme

Low to
Medium

Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus


(Principal units sub-option), Annual Bonus (Principal units sub-option), Half Yearly
Bonus (Principal units sub-option) & Quarterly Bonus (Principal units sub-option).
Direct Plan: Dividend (Payout & Reinvestment sub-option), Growth, Bonus
(Principal units sub-option), Annual Bonus (Principal units sub-option), Half Yearly
Bonus (Principal units sub-option) & Quarterly Bonus (Principal units sub-option).

Normal Plan: Daily Dividend (Reinvestment sub-option), Dividend (Payout &


Reinvestment sub-option) & Growth
Direct Plan: Daily Dividend (Reinvestment sub-option), Dividend (Payout &
Reinvestment sub-option) & Growth

Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 2


No. of Units

Refer JM SCHEMES RECKONER on page 4

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL Liquid Fund Index (CLFI)

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Chaitanya Choksi, Sanjay Chhabaria, Asit Bhandarkar

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Vikas Agrawal

JM Arbitrage Advantage Fund

8.20

9.00

8.36

Since
Inception*
7.85

CLFI

8.98

8.89

8.26

7.54

Returns

1 Year

3 Years

5 Years

* Date of inception = Date of allotment i.e. 18.07.2006


Returns

1 Year

Since Inception*

JM Arbitrage Advantage Fund (Direct)

8.72

9.24

CLFI

8.98

9.17

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any). Past performance may or may not be sustained
in future. Absolute Returns for each financial year for the last 5 years
JM Arbitrage Advantage Fund

Bench mark Crisil Liquid Fund Index

Compounded annualized returns (%) of Growth option as on March 31, 2015.


Returns
JM Short Term Fund
CLFI

1 Year
10.18
8.98

3 Years
9.11
8.89

5 Years
8.89
8.26

Since Inception*
5.88
6.74

* Date of inception = Date of allotment i.e. 24.06.2002


Returns
JM Short Term Fund
CLFI

1 Year
10.45
8.98

Since Inception*
8.96
9.11

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.
Absolute Returns for each financial year for the last 5 years
JM Short Term Fund

12.00

Bench Mark Crisil Liquid Fund Index

12.00

10.00

% Returns

% Returns

10.00

8.00
6.00
4.00
2.00

8.00
6.00
4.00
2.00

0.00

0.00

2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

Entry Load

NIL

Exit Load*

0.50% of NAV on all investments, if redeemed/switched-out within 30 days from the


date of transfer/allotment of units in normal transactions/allotment of units of respective
installments in SIP/STP/SWP transactions.

0.25% of NAV on all investments, if redeemed/switched-out within 30 days from the


date of transfer/allotment of units in normal transactions/allotment of units of respective
installments in SIP/STP/SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 1.03%, Direct: 0.56%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.97%, Direct: 0.70%

No. of Folios as on 31.03.2015

2,253

655

Quarterly Avg. AUM


(In Crores) - Jan 15 to Mar 15

3,133.85

54.15

Name(s) of the Scheme(s)

JM Floater Long Term Fund

JM Floater Short Term Fund

Type of Scheme

An open-ended income scheme

An open-ended liquid scheme

Investment Objective

To provide regular income and capital appreciation through investment in floating rate
debt instruments, fixed rate debt instruments swapped for floating rate returns and
also fixed rate instruments and money market instruments.
However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

To provide regular income and capital appreciation through investment in floating rate
debt instruments, fixed rate debt instruments swapped for floating rate returns and
also fixed rate instruments and money market instruments.

The Fund will seek to invest in quality debt and money market instruments. The fund
aims to identify securities, which offer superior levels of yields at lower levels of risk.
With the aim of controlling risks, rigorous in-depth credit evaluations of the securities
proposed to be invested in will be carried out.

The Fund will seek to invest in quality debt and money market instruments. The fund
aims to identify securities, which offer superior levels of yields at lower levels of risk.
With the aim of controlling risks, rigorous in-depth credit evaluations of the securities
proposed to be invested in will be carried out.

Investment Strategy

Asset Allocation Pattern of the


Scheme

Type of Instruments

NIL

Normal Allocation (%
of net assets)

Debt
Money market and short term debt
inst. maturing within one year

Risk Profile

0% to 65%

Low-Medium

35% to 100%

Low-Medium

However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

Type of Instruments
Money market and short term debt
instrument maturing within less than
91 days

Normal Allocation
(% of net assets)

Risk Profile

0% to 100%

Low to
Medium

Pls see note $


Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend


(Reinvestment sub-option), Dividend (Payout & Reinvestment sub-option), Growth,
Bonus (Principal Units sub-option), Monthly Dividend (Payout & Reinvestment suboption) and Half Yearly Bonus (Principal Units sub-option)
Direct Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend
(Reinvestment sub-option), Dividend (Payout & Reinvestment sub-option), Growth,
Bonus (Principal Units sub-option), Monthly Dividend (Payout & Reinvestment suboption) and Half Yearly Bonus (Principal Units sub-option)

Normal Plan: Daily Dividend (Reinvestment sub-option), Growth, Bonus (Principal


Units sub-option), Monthly Dividend (Payout & Reinvestment sub-option) and Half
Yearly Bonus (Principal Units sub-option)

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Applicable NAV

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 3


No. of Units

Direct Plan: Daily Dividend (Reinvestment sub-option), Growth, Bonus (Principal Units
sub-option), Monthly Dividend (Payout & Reinvestment sub-option) and Half Yearly
Bonus (Principal Units sub-option)

Refer JM SCHEMES RECKONER on page 3

Name(s) of the Scheme(s)

JM Floater Long Term Fund

JM Floater Short Term Fund

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL Liquid Fund Index (CLFI)

Dividend Frequency^

Daily

Dividend Policy

Details are set out in subsequent pages.

Name of the Fund Manager

Shalini Tibrewala

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Daily
Details are set out in subsequent pages.
Shalini Tibrewala

Returns

1 Year

3 Years

5 Years

Since Inception*

JM Floater Long Term Fund

8.85

8.32

7.89

6.59

CLFI

8.98

8.89

8.26

6.77

1 Year

Since Inception*

* Date of inception = Date of allotment i.e. 25.06.2003


Returns
JM Floater Long Term Fund (Direct)

9.31

9.11

CLFI

8.98

9.17

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.
Absolute Returns for each financial year for the last 5 years
JM Floater Long Term Fund

Compounded annualized returns (%) of Growth option as on March 31, 2015.


Returns

1 year

3 years

5 years

JM Floater Short Term Fund


8.36
8.42
CLFI
8.98
8.89
* Date of inception = Date of allotment i.e. 25.06.2003

7.84
8.26

Returns

1 year

JM Floater Short Term Fund (Direct)


CLFI

8.47
8.98

Since
Inception*
6.77
6.77
Since
Inception*
8.54
9.17

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any). Past performance may or may not be
sustained in future.
Absolute Returns for each financial year for the last 5 years
JM Floater Short Term Fund

Bench Mark Crisil Liquid Fund Index

Bench Mark Crisil Liquid Fund Index

10.00

10.00

8.00

% Returns

% Returns

8.00
6.00
4.00

4.00
2.00

2.00

0.00

0.00
2014 2015

Entry Load

6.00

2013 2014

2012 2013

2011 2012

2010 2011

NIL

2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

NIL

Exit Load*

NIL

0.25% of NAV on all investments, if redeemed/switched-out within 35 days from the


date of transfer/allotment of units in normal transactions/allotment of units of respective
installments in SIP/STP/SWP transactions.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.67%, Direct: 0.44%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.55%, Direct: 0.38%

No. of Folios as on 31.03.2015

171

177

Quarterly Avg. AUM


(In Crores) - Jan 15 to Mar 15

54.64

43.68

Name(s) of the Scheme(s)

JM High Liquidity Fund

JM Income Fund

Type of Scheme

An open-ended liquid scheme

An open-ended income scheme

Investment Objective

To provide income by way of dividend (dividend plans) and capital gains (growth plan) To generate stable long term returns with low risk strategy and capital appreciation
through investing in debt and money market instruments.
/ accretion through investment in debt instruments and related securities besides
However, there can be no assurance that the investment objectives of the Scheme preservation of capital.
will be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.

Securities will be selected by the fund manager based on a continuous study of the JM Income Fund will seek to invest in high quality debt and money market instruments.
trends in the economy, liquidity and interest rates, management capabilities, credit The fund aims to identify securities, which offer superior levels of yield at lower levels
rating and other relevant investment criteria.
of risks. With the aim of controlling risks, rigorous in depth credit evaluation of the
A constant watch will be kept on various liquidity indicators in the economy, inflation rate securities proposed to be invested in will be carried out by the investment team of
movement, cash flows etc. so as to ascertain the expected changes in interest rates in the AMC. Rated Debt instruments in which the Scheme invests will be of investment
the short/medium term and accordingly funds would be invested to optimize returns. grade as rated by a credit rating agency. The AMC will be guided by the ratings of
Rating Agencies such as CRISIL, CARE, ICRA and Duff and Phelps Credit Rating
Being a cash management product, the primary aim of the fund will be to invest in India Limited or any other rating agencies that may be registered with SEBI from time
securities which have superior liquidity. The Scheme will have an appropriate mix of to time. In case a debt instrument is not rated, necessary clearance of the Committee/
money market securities and fixed income securities depending on the prevailing Board as per requirements of Regulations/Guidelines /Circulars will be obtained for
market outlook to generate reasonable return with low risk and high level of liquidity. such an investment.
The Scheme may also use various derivatives and hedging products from time to time,
as would be available and permitted by SEBI, in an attempt to protect the value of the
portfolio and enhance Unitholders interest.
The Scheme may invest in other debt Schemes managed by the AMC or in the debt
Schemes of any other Mutual Funds, provided it is in conformity to the investment
objectives of the Scheme and in terms of the prevailing Regulations. As per the
Regulations, no investment management fees will be charged for such investments
and the aggregate inter Scheme investment made by all Schemes of JM Financial
Mutual Fund or in the Schemes under the management of other asset management
companies shall not exceed 5% of the net asset value of JM Financial Mutual Fund.

Asset Allocation Pattern of the


Scheme

Type of Instruments

Normal Allocation
(% of net assets)

Risk Profile

0% to 30%

Low
Low

Debt
Money Market & Short Term debt
instruments maturing within one year

70% to 100%

Type of Instruments

Normal Allocation
(% of net assets)

Risk Profile

Debt

0% to 100%

Low to Medium

Money Market and Debt Instruments


maturing within one year

0% to 100%

Low

The gross notional exposure in derivatives shall not exceed the AuM of the Scheme.
Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend (Payout/


Reinvestment sub-option), Quarterly Dividend (Payout/Reinvestment sub-option),
Growth & Bonus (Principal units sub-option).

Normal Plan: Quarterly Dividend (Payout/Reinvestment sub-option), Growth & Bonus


(Principal units sub-option)
Direct Plan: Quarterly Dividend (Payout/Reinvestment option), Growth & Bonus
(Principal units sub-option)

Direct Plan: Daily Dividend (Reinvestment sub-option), Weekly Dividend (Payout/


Reinvestment sub-option), Quarterly Dividend (Payout/Reinvestment sub-option),
Growth & Bonus (Principal units sub-option).
Applicable NAV

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 3


No. of Units

Refer JM SCHEMES RECKONER on page 3

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL Composite Bond Fund Index (CCBFI)

Dividend Frequency^

Daily / Weekly / Quarterly

Quarterly

Dividend Policy

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Shalini Tibrewala

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Vikas Agrawal

Returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

1 year

3 years

5 years

Since Inception*

Returns

1 year

3 years

5 years

Since Incep.*

JM High Liquidity Fund

9.03

9.25

8.73

8.07

JM Income Fund

13.53

9.01

7.94

7.35

CLFI

8.98

8.89

8.26

NA

CCBFI

14.54

9.32

8.13

NA

Returns

1 year

Since Incep.*

JM Income Fund (Direct)

14.63

9.84

CCBFI

14.54

9.18

* Date of inception = Date of allotment i.e. 31.12.1997


Returns

* Date of inception = Date of allotment i.e. 01.04.1995

1 year

Since Inception*

JM High Liquidity Fund (Direct)

9.11

9.29

CLFI

8.98

9.11

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with
reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

Absolute Returns for each financial year for the last 5 years

Absolute Returns for each financial year for the last 5 years
JM Income Fund

Bench Mark Crisil Liquid Fund Index

10.00

16.00

8.00

14.00
12.00

% Returns

% Returns

JM High Liquidity Fund

6.00
4.00

10.00
8.00
6.00
4.00
2.00

2.00

0.00

0.00
2014 2015

Entry Load

Bench Mark Crisil Composite Bond Fund Index

2013 2014

2012 2013

2011 2012

NIL

2010 2011

2014 2015

2013 2014

2012 2013

2011 2012

Exit Load*

NIL

NIL

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 0.28%, Direct: 0.21%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.62%, Direct: 1.95%

No. of Folios as on 31.03.2015

1,925

Quarterly Avg. AUM (In Crores) 5,166.15


Jan 15 to Mar 15
Name(s) of the Scheme(s)
Type of Scheme
Investment Objective

2010 2011

NIL

2,663
24.14

JM Money Manager Fund

JM MIP Fund

An open-ended Debt scheme

An open-ended monthly income fund with no assured return. Monthly Income is not
assured and is subject to the availability of the distributable surplus.

To generate stable long term returns with low risk strategy and capital appreciation/ To generate regular income, primarily through investments in fixed income securities
accretion through investments in debt instruments and related securities besides so as to make monthly, quarterly and annual dividend distribution, declare bonus in
preservation of capital
the growth option. The Fund would also aim to achieve capital appreciation through
However, there can be no assurance that the investment objectives of the Scheme will investing a portion of its assets in equity and equity related securities.
However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.
be realized. The Scheme does not guarantee/indicate any returns.

Investment Strategy

Asset Allocation Pattern of the


Scheme

JM Financial Mutual Fund adopts a scientific approach to investments. Securities


are selected for various funds by the fund managers based on a continuous study
of trends in industries and companies, including management capabilities, global
competitiveness, earning power, growth/payout features and other relevant investment
criteria, which would, inter alia, include evaluation of the outlook of the economy,
exposure to various industries and geographical regions, evaluation of the intrinsic worth
of specific opportunities such as primary market transactions, private placements, etc.

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

0% to 100%

Low

Debt, Money Market / Short term debt


instruments

To achieve the investment objective, assets under the Scheme will be invested in wide
range of fixed income and money market instruments. The Scheme may also invest a
small part of its assets in equity/equity related instruments. Further the Scheme may
also invest in financial derivatives such as options and futures & IRS that are permitted
or may become permissible under SEBI/RBI Regulations. The proportion of assets to be
so invested would be decided by the AMC at the appropriate time, and would be done in
accordance with the relevant guidelines to be issued by SEBI/RBI and other authorities.

Type of Instruments

Normal Allocation (%
of net assets)

Risk Profile

0% to 15%

Medium to High

85% to 100%

Low to Medium

Equity and Equity related securities


Debt securities, Money Market
Instruments, Securitized Debt*, Cash
and Call

*Exposure in securitised debt 0% 70% of net asset of this scheme with low risk
profile.
Risk Profile of the Scheme

Mutual Fund Units involve investment risks including the possible loss of principal. Mutual Fund Units involve investment risks including the possible loss of principal.
Please read the SID carefully for details on risk factors before investment.
Please read the SID carefully for details on risk factors before investment.

Plans and Options

Normal: Regular Plan, Super Plan & Super Plus Plan each having Daily Dividend, Weekly
Dividend, Fortnightly Dividend (Reinvestment), Growth & Bonus (Principal Units suboption).
Direct: Regular Plan, Super Plan & Super Plus Plan each having Direct - Daily Dividend,
Direct - Weekly Dividend, Direct - Fortnightly Dividend (Reinvestment), Direct - Growth
& Direct - Bonus (Principal Units sub-option).

Normal Plan: Dividend with Monthly, Quarterly and Annual (Payout/Reinvestment


sub-option), Growth & Bonus (Principal units sub-option)

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Applicable NAV

Direct Plan: Dividend with Monthly, Quarterly and Annual (Payout/Reinvestment


sub-option), Growth & Bonus (Principal units sub-option)

Minimum Application Amount / Refer JM SCHEMES RECKONER on page 4


No. of Units

Refer JM SCHEMES RECKONER on page 3

Dispatch of Repurchase /
Redemption request

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Benchmark Index

CRISIL Liquid Fund Index (CLFI)

CRISIL MIP Blended Index (CMIP In)

Dividend Frequency^

Daily / Weekly / Fortnightly (with compulsory reinvestment).

Dividend Policy

Monthly / Quarterly / Annual

Details are set out in subsequent pages.

Details are set out in subsequent pages.

Name of the Fund Manager

Vikas Agrawal

Performance of the Scheme


Compounded annualized
returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

Shalini Tibrewala

Returns

Compounded annualized returns (%) of Growth option as on March 31, 2015.

1 Year

3 Years

5 Years

Since Inception*

Returns

1 Year

3 Years

5 Years

Regular Plan

8.72

9.40

9.08

8.12

JM MIP Fund

13.36

9.96

7.82

6.85

Super Plan

8.79

9.36

9.07

8.46

CMIP In

16.39

10.59

8.61

8.28

Super Plus Plan

8.88

9.30

8.80

8.35

CLFI

8.98

8.89

8.26

7.59

* Date of inception = Date of allotment i.e. 18.09.2003

* Date of inception = Date of allotment i.e. 27.09.2006


Returns

1 Year

CLFI

Since
Inception*

CLFI

Regular Plan (Direct)

9.01

8.98

9.41

9.11

Super Plan (Direct)

8.99

8.98

9.30

9.12

Super Plus Plan (Direct)


8.99
8.98
9.21
9.11
* Date of inception = 01.01.2013
Note: Compounded Annualised Growth Returns (CAGR) for period less than 1 year
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

Returns

1 Year

Since Inception*

JM MIP Fund (Direct)

15.09

12.81

CMIP In

16.39

10.56

* Date of inception = 01.01.2013


Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.
Absolute Returns for each financial year for the last 5 years
JM MIP Fund

JM Money Manager FundRegular Plan


JM Money Manager FundSuper Plus Plan

JM Money Manager FundSuper Plan


Bench Mark Crisil Liquid Fund Index

% Returns

10.00

% Returns

Absolute Returns for each financial year for the last 5 years

12.00

Since Inception*

8.00
6.00
4.00

Bench Mark Crisil MIP Blended Index

18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

2.00
0.00
2014 2015

2013 2014

2012 2013

2011 2012

2010 2011

Entry Load

NIL

NIL

Exit Load*

JM Money Manager - Regular Plan: NIL


JM Money Manager - Super Plan: NIL
JM Money Manager - Super Plus Plan: NIL

0.50% of NAV on all investments in case the investments are redeemed/switchedout within 182 days of transfer /allotment of units in normal transactions/respective
installments under SIP/STP transaction mode.

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Regular Plan - Normal: 0.82%, Direct: 0.47%
Super Plan - Normal: 0.53%, Diirect: 0.36%
Super Plus Plan - Normal: 0.53%, Direct: 0.43%

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.56%, Direct: 1.12%

No. of Folios as on 31.03.2015

Regular plan: 871, Super Plan: 1,002, Super Plus Plan: 1,183

817

Quarterly Avg. AUM (In Crores) Regular plan: 123.87, Super Plan: 252.64, Super Plus Plan: 1,127.35
Jan 15 to Mar 15
Name(s) of the Scheme(s)

JM G-Sec Fund

Type of Scheme

An open-ended dedicated gilts scheme

4.63
Note: The returns of the schemes are calculated on the basis of the NAVs declared
as on the last business day.

$ Asset allocation of JM Floater Fund will be 35% to 100% in Floating rate debt
To provide ultimate level of safety to its unitholders through investments in sovereign securities/ fixed rate dabt securities swapped for floating rate returns and 0% to 65%
securities issued by the Central and State Government.
in fixed rate debt securities (including securitized debt)/ money market securities.
However, there can be no assurance that the investment objectives of the Scheme will Exposure in securitized debt 0%-70% of net assets of this scheme with low risk
profile.^Pls refer page no. 1 for reckoner regarding default sub-option in case of
be realized. The Scheme does not guarantee/indicate any returns.
Investment Strategy
In line with the objective of JM G-Sec Fund, the investment strategy has been designed dividend reinvestment. Under Daily Dividend Option the dividend will be automatically reinvested by default.
to ensure safety which is a paramount feature of investment in this fund with returns
Direct Plan shall have a lower expense ratio excluding distribution expenses, comcommensurate to investment in Government Securities.
mission, etc and no commission for distribution of Units will be paid / charged under
The Investment Manager would endeavour to achieve an improved return than the
Direct Plan.
returns traditionally expected from such an instrument by actively managing the portfolio.
Further, by enlarging the basket of Government securities, the safety of the Fund as * No exit load shall be charged for any switch of investments between Existing Plan
a whole will be elevated to the highest degree than what is normally associated with (whether the investments were made before or after the Effective Date) and Direct
Plan within the same scheme. The applicable exit load, if any, will be charged for rean individual security.
demptions/ switch outs of the scheme (i.e. at portfolio level) before the completion of
the stipulated load/ lock-in period. The stipulated load/ lock-in period will be reckoned
Asset Allocation Pattern of the
Normal
Allocation
Type of Instruments
Risk Profile
from the date of allotment of units for a particular transaction in the scheme (i.e. at
Scheme
(% of net assets)
portfolio level) till the date of redemption / switch out from that scheme, irrespective
Government Securities / Treasury Bills 0% to 100%
Low to Medium
of the number of intra-scheme switches by the investor between the aforementioned
CBLO/REPO
0% to 100%
Low
two dates (e.g. switches between plans/sub-plans/options/sub-options within the
The gross notional exposure in derivatives shall not exceed the AuM of the Scheme. scheme having the same portfolio)
Investment Objective

The extant provisions of applicability of load on redemptions/ switches from one


Scheme to another will continue to be applicable.
Mutual Fund Units involve investment risks including the possible loss of principal.
Recurring Expenses:
Please read the SID carefully for details on risk factors before investment.
As per the amendments to the SEBI (Mutual Funds) Regulations, 1996 [SEBI
Plans and Options
Normal Plan: Quarterly Dividend (Payout/Reinvestment sub-option), Monthly Dividend
Regulations] notified vide notification No. LAD-NRO/GN/2012-13/17/21502 dated
(Payout/Reinvestment sub-option), Half Yearly Dividend (Payout/Reinvestment subSeptember 26, 2012 (Notification), the total expenses of the scheme including the
option), Annual Dividend (Payout/Reinvestment sub-option) Growth & Bonus
investment management and advisory fee (for other than Index and Fund of Funds
Direct Plan: Quarterly Dividend (Payout/Reinvestment sub-option), Monthly Dividend Schemes) shall not exceed the limits stated in Regulation 52(6):
(Payout/Reinvestment sub-option), Half Yearly Dividend (Payout/Reinvestment sub- (i) On the first Rs. 100 crore of the daily net assets 2.50%.
option), Annual Dividend (Payout/Reinvestment sub-option) Growth & Bonus
(ii) On the next Rs. 300 crore of the daily net assets 2.25%.
Applicable NAV
Details are set out in subsequent pages.
(iii) On the next Rs. 300 crore of the daily net assets 2.00%.
Minimum Application Amount / Refer JM SCHEMES RECKONER on page 4
(iv) On the balance of the assets 1.75%.
No. of Units
Provided that in respect of a scheme investing in bonds such recurring expenses
Dispatch of Repurchase /
Details are set out in subsequent pages.
shall be lesser by atleast 0.25% of the daily net assets outstanding in each financial
Redemption request
year. In addition to the limits as specified in Regulation 52(6) of SEBI Regulations,
the following costs or expenses can be charged to the schemes of JM Financial
I-SEC Composite Index
Benchmark Index
Mutual Fund (JMF):
Dividend Frequency^
Quarterly
Additional TER of up to 30 basis points on daily net assets of the scheme as per
Dividend Policy
Details are set out in subsequent pages.
regulation 52 of SEBI (Mutual Funds) Regulations, 1996 if the new inflows from
Name of the Fund Manager
Vikas Agrawal
beyond top 15 cities* received by JMF are at least (a) 30% of gross new inflows in
the scheme or (b) 15% of the average assets under management (year to date) of
Performance of the Scheme
Compounded annualized returns (%) of Growth option as on March 31, 2015.
the scheme, whichever is higher. In case the inflows from beyond top 15 cities is
Compounded annualized
Returns
1 Year
3 Years 5 Years
Since Incep.*
less than the higher of (a) or (b) above, then additional TER can be charged on pro
returns
JM G-Sec Fund
14.80
9.39
8.26
10.07
rata basis. The additional TER on account of inflows from beyond top 15 cities so
charged shall be clawed back in case the same is redeemed within a period of 1 year
ISEC Composite Index
15.58
10.30
8.81
NA
from the date of investment. The amount so charged shall be utilised for distribution
* Date of inception = Date of allotment i.e. 29.09.1999
expenses incurred for bringing inflows from such cities. * The top 15 cities shall mean
top 15 cities based on Association of Mutual Funds in India (AMFI) data on AUM
Returns
1 Year
Since Incep.*
by Geography Consolidated Data for Mutual Fund Industry as at the end of the
JM G-Sec Fund (Direct)
15.54
9.22
previous financial year.
ISEC Composite Index
15.58
9.65
Additional expenses not exceeding 0.20 per cent of daily net assets of the scheme,
* Date of inception = 01.01.2013
incurred towards different heads mentioned under sub-regulations (2) and (4) of
Risk Profile of the Scheme

Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
with reinvestment of dividends (if any).
Past performance may or may not be sustained in future.

% Returns

Absolute Returns for each financial year for the last 5 years
JM Gsec Fund

18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2014 2015

2013 2014

Bench Mark I Sec Composite Index

2012 2013

2011 2012

2010 2011

Regulation 52. The brokerage and transaction costs which are incurred for the
purpose of execution of trade and is included in the cost of investment shall not
exceed 0.12% in case of cash market transactions and 0.05% in case of derivative
transactions.
The investors shall also note that the contents set out under part E. (iv) under
the head Aggregate fees and expenses charged to the scheme of the Common
Scheme Information Document (SID) of both Equity and Debt Schemes of JMF
stands amended in light of the Notification dated September 26, 2012, whereby the
slabs on Investment Management & Advisory Fee have been withdrawn. As required
under Regulation 52 of the Regulations, the Investment Management & Advisory
Fee would be disclosed in the Scheme Information Document(s) of the Schemes.
The aggregate of the Investment Management & Advisory Fee charged by JMF AMC
and the Expenses will remain within the maximum permissible TER as per Regulation 52 of the Regulations, as amended from time to time.

Entry Load

NIL

Exit Load*

NIL

Recurring expenses
[% of Net Assets]

Actual Expenses for the period 1st April 2014 to 31st March 2015:
Normal: 2.18%, Direct: 1.12%

No. of Folios as on 31.03.2015

304

Service Tax: Service tax on investment and advisory fees will be charged to
the scheme in addition to the maximum limit of TER as per Regulation 52 of the
Regulations. Service tax on other than investment and advisory fees, if any, shall be
borne by the scheme within the maximum limit of TER, as per Regulation 52 of the
Regulations. Service tax on exit load, if any, shall be paid out of the exit load proceeds
and exit load net of service tax, if any, shall be credited back to the scheme.
Investor Education and Awareness: JM Financial Asset Management Limited (JMF
AMC) shall annually set apart 2 basis points on daily net assets within the maximum limit of TER as per Regulation 52 of the Regulations, for investor education and
awareness initiatives.

Quarterly Avg. AUM (In Crores) - 37.82


Jan 15 to Mar 15

CHECKLIST
Please ensure that your Application Form is
Complete in all respects & signed by all applicants.
Name, Address and Contact Details are mentioned in full.
Bank Account Details are entered completely and correctly.
Permanent Account Number (PAN) of all Applicants is mentioned for all investments and verified copy of Pan Card is submitted.
Appropriate Option / Sub-option is selected. If the Dividend Option is chosen, Dividend Payout or Re-investment is indicated.
If units are applied for jointly, Mode of Operation of account is indicated.

KYC Acknowledgement issued by the KRA is submitted irrespective of the amount of investment.

Investment Cheque/Demand Draft is drawn in favour of respective scheme you wish to apply for, dated and signed.
Application Number is mentioned on the reverse of the Cheque/Demand Draft.
Documents, as applicable, are submitted along with the Application Form.
Accompanying documents
Please submit the following documents (where applicable) with your application. All documents should be original / true copies certified by a Director/Trustee/Company/Secretary/Authorised Signatory in case
of Non Individuals and by gazette officer/notarized in case Individuals (Resident, PIOs & NRI).
Documents
Resolution/Authorisation to invest
List of Authorised Signatories with Specimen signature(s)
Memorandum & Articles of Association
Trust Deed
Bye-laws
Partnership Deed
Overseas Auditors Certificate
Notarised Power of Attorney
Bank confirmation of source of funds/FIRC
Proof of Identity
Proof of Address
PAN
KYC Acknowledgement issued by the KRA

Individual

Companies
P
P
P

Societies
P
P

P
P

Partnership
Firms

Investments
through POA
P

Trusts

P
P
P

P
P
P

Flls

PIO

P
P

P
P

P
P
P
P
P

NRI

P
P

P
P
P

P
P
P

P
P
P

P
P
P
P
P

P
P
P

P
P
P
P
P

RISK FACTORS (Equity & Debt)

and the ability to manage the risks as a result of the failure of the counterparty
to comply with the terms of the derivative contract. Other risks in using
derivatives include the risk of mispricing or improper valuation of derivatives,
credit risk where the danger is that of a counterparty failing to honour its
commitment, liquidity risk where the danger is that the derivatives cannot be
sold at prices that reflect the underlying assets, rates and indices and price risk
where the market price may move in adverse fashion.

Standard Risk Factors:


Investment in Mutual Fund Units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal.

As the price / value / interest rates of the securities in which the scheme invests
fluctuates, the value of your investment in the scheme may go up or down

Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future


performance of the scheme.

The names of the schemes do not in any manner indicate either the quality of the
scheme or its future prospects and returns.

The sponsor is not responsible or liable for any loss resulting from the operation of
the scheme beyond the initial contribution of 1 Lac made by it towards setting up
the Fund.

The present scheme is not a guaranteed or assured return scheme.

Derivative products are leveraged instruments and can provide


disproportionate gains as well as disproportionate losses to the investor.
Execution of such strategies depends upon the ability of the fund manager
to identify such opportunities. Identification and execution of the strategies
to be pursued by the fund manager involve uncertainty and decision of fund
manager may not always be profitable. No assurance can be given that the
Fund Manager will be able to identify or execute such strategies.

The risks associated with the use of derivatives are different from or possibly
greater than, the risks associated with investing directly in securities and other
traditional investments and are given in more detail under the head.

ii)

Liquidity or Marketability Risk: This refers to the ease at which a security can
be sold at or near its true value. The primary measure of liquidity risk is the
spread between the bid price and the offer price quoted by a dealer. Liquidity
risk is characteristic of the Indian fixed income market. Trading volumes,
settlement periods and transfer procedures may restrict the liquidity of some
of these investments. Different segments of the Indian financial markets have
different settlement periods, and such periods may be extended significantly
by unforeseen circumstances. The length of time for settlement may affect the
Scheme in the event it has to meet an inordinately large number of redemption
or of restructuring of the Schemes investment portfolio.

iii) Redemption Risk: As the liquidity of the investments made by the Scheme
could, at times, be restricted by trading volumes and settlement periods, the
time taken by the Mutual Fund for redemption of Units may be significant
in the event of an inordinately large number of redemption requests or a
restructuring of the Scheme.

iv) Investment exposure of the Fund with reference to Securitised Debt and
risk factors specific to investments in Securitised papers

The Fund will predominantly invest only in those securitisation issuances


which have a rating of AA and above indicating the high level of safety from
credit risk point of view at the time of making an investment. The Fund will not
invest in foreign securitised debt.

The Fund may invest in various type of securitisation issuances, including but
not limited to Asset Backed Securitisation, Mortgage Backed Securitisation,
Personal Loan Backed Securitisation, Collateralized Loan Obligation /
Collateralized Bond Obligation and so on.

The Fund will conduct an independent due diligence on the cash margins,
collateralisation, guarantees and other credit enhancements and the portfolio
characteristic of the securitisation to ensure that the issuance fits in to the
overall objective of the investment in high investment grade offerings
irrespective of underlying asset class.

Types of securitised debt vary and carry different levels and types of risks. Credit
risk on securitised bonds depends upon the originator and varies depending
on whether they are issued with recourse to originator or otherwise. Even
within securitised debt, AAA rated securitised debt offers lesser risk of default
than AA rated securitised debt. A structure with Recourse will have a lower
credit risk than a structure without recourse.

Other Risk Factors


a) Risk related to Equity & Equity related securities

i)

Trading volumes, settlement periods and transfer procedures may restrict the
liquidity of the investments in equity and equity related securities. Different
segments of the Indian financial markets have different settlement periods
and such periods may be extended significantly by unforeseen circumstances
leading to delays in receipt of sale proceeds. The NAVs of the units of the
Scheme can go up or down because of various factors that affect the capital
markets in general. Macroeconomic factors like changes in tax rates, political
uncertainties, changes in government regulations etc. and industry specific
factors like competition, demand supply, etc. could impact the performance of
the companies in which the Scheme invests.

ii)

Stock Lending

In case the Scheme undertakes stock lending under the Regulations, it may,
at times be exposed to counter party risk and other risks associated with
the securities lending. Unitholders of the Scheme should note that there are
risks inherent to securities lending, including the risk of failure of the other
party, in this case the approved intermediary, to comply with the terms of the
agreement entered into between the lender of securities i.e. the Scheme and
the approved intermediary. Such failure can result in the possible loss of rights
to the collateral put up by the borrower of the securities, the inability of the
approved intermediary to return the securities deposited by the lender and
the possible loss of any corporate benefits accruing to the lender from the
securities deposited with the approved intermediary.

iii) Risk related to ADR/GDR

The Scheme may also invest in ADRs / GDRs as permitted by Reserve Bank
of India and Securities and Exchange Board of India. To the extent that some
part of the assets of the Plans may be invested in securities denominated in
foreign currencies, the Indian Rupee equivalent of the net assets, distributions
and income may be adversely affected by the changes in the value of certain
foreign currencies relative to the Indian Rupee. The repatriation of capital also
may be hampered by changes in regulations concerning exchange controls or
political circumstances as well as the application to it of other restrictions on
investment.

b) Risk related to Debt Instruments


i)

Interest Rate Risk: As with all debt securities, changes in interest rates will
affect the NAVs of the Scheme as the prices of securities generally increase as
interest rates decline and generally decrease as interest rates rise. Prices of long
term securities generally fluctuate more in response to interest rate changes
than of shorter-term securities. Interest rate movements in the Indian debt
markets can be volatile leading to the possibility of large price movements up
or down in debt and money market securities and thereby to possibly large
movements in the NAV.

ii) Credit Risk: Credit risk or default risk refers to the risk that an issuer of a fixed
income security may default (i.e., will be unable to make timely principal and
interest payments on the security). Because of this risk, debentures are sold at
a yield spread above those offered on treasury securities which are sovereign
obligations and generally considered to be free of credit risk. Normally, the
value of a fixed income security will fluctuate depending upon the actual
changes in the perceived level of credit risk as well as the actual event of
default.
iii) Reinvestment Risk: This risk refers to the interest rate levels at which cash
flows received from the securities in the Scheme or from maturities in the
Scheme are reinvested. The additional income from reinvestment is the
interest on interest component. The risk is that the rate at which interim cash
flows can be reinvested will fall.

c)

Common Risk Factors for Equity & Debt Instruments

i)

Derivative Risks: In the derivative markets there are risk factors and issues
concerning the use of derivatives that investors should understand. Derivatives
require the maintenance of adequate controls to monitor the transactions
entered into, the ability to assess the risk that a derivative adds to the portfolio

Risk analysis on underlying asset classes in securitisation

Generally the following asset classes for securitisation are available in India :

(a) Commercial Vehicles

(b) Auto and Two wheeler pools

(c) Mortgage pools (residential housing loans)

(d) Personal Loan, credit card and other retail loans

(e) Corporate loans/receivables

Underlying assets in securitised debt may assume different forms and the
general types of receivables include auto finance, credit cards, home loans or
any such receipts. Credit risks relating to these types of receivables depend
upon various factors including macro economic factors of these industries and
economies. Specific factors like nature and adequacy of property mortgaged
against these borrowings, nature of loan agreement / mortgage deed in case
of home loan, adequacy of documentation in case of auto finance and home
loans, capacity of borrower to meet its obligation on borrowings in case of
credit cards and intentions of the borrower influence the risks relating to the
asset borrowings underlying the securitised debt.

Holders of the securitised assets may have low credit risk with diversified retail
base on underlying assets especially when securitised assets are created by
high credit rated tranches. Risk profiles of Planned Amortisation Class tranches
(PAC), Principal Only Class Tranches (PO) and Interest Only class tranches
(IO) will differ depending upon the interest rate movement and speed of

prepayment.

underlying assets.

In terms of specific risks attached to securitisation, each asset class would have
different underlying risks, however, residential mortgages are supposed to be
having lower default rates as an asset class. On the other hand, repossession
and subsequent recovery of commercial vehicles and other auto assets is fairly
easier and better compared to mortgages. Some of the asset classes such as
personal loans, credit card receivables, etc., being unsecured credits in nature,
may witness higher default rates. As regards corporate loans/receivables,
depending upon the nature of the underlying security for the loan or the
nature of the receivable the risks would correspondingly fluctuate. However,
the credit enhancement stipulated by rating agencies for such asset class
pools is typically much higher and hence their overall risks are comparable to
other AAA rated asset classes. The rating agencies have an elaborate system of
stipulating margins, over collateralisation and guarantees to bring risk limits in
line with the other AA rated securities.

World over, the quality of credit ratings is measured by default rates and stability. An
analysis of rating transition and default rates, witnessed in both international and
domestic arena, clearly reveals that structured finance ratings have been characterized
by far lower default and transition rates than that of plain vanilla debt ratings. Further,
internationally, in case of structured finance ratings, not only are the default rates low but
post default recovery is also high.

The change in market interest rates prepayments may not change the absolute amount
of receivables for the investors, but may have an impact on the re-investment of the
periodic cash flows that the investor receives in the securitised paper.

In the Indian scenario, also, more than 95% of issuances have been AAA rated
issuances indicating the strength of the underlying assets as well as adequacy of credit
enhancement.
Interest Rate Risk

The risks associated with the underlying assets can be described as under :

Limited liquidity & price risk

Credit card receivables are unsecured. Automobile / vehicle loan receivables


are usually secured by the underlying automobile / vehicle and sometimes by
a guarantor. Mortgages are secured by the underlying property. Personal loans
are usually unsecured.

Corporate loans could be unsecured or secured by a charge on fixed assets /


receivables of the company or a letter of comfort from the parent company or
a guarantee from a bank / financial institution. As a rule of thumb, underlying
assets which are secured by a physical asset / guarantor are perceived to be less
risky than those which are unsecured. By virtue of this, the risk and therefore
the yield in descending order of magnitude would be credit card receivables,
personal loans, vehicle /automobile loans, mortgages and corporate loans
assuming the same rating.

Presently, secondary market for securitised papers is not very liquid. There is no assurance
that a deep secondary market will develop for such securities. This could limit the ability
of the investor to resell them. Even if a secondary market develops and sales were to take
place, these secondary transactions may be at a discount to the initial issue price due to
changes in the interest rate structure.

Some of the factors, which are typically analyzed for any pool are as follows :
Size of the loan : generally indicates the kind of assets financed with loans. Also
indicates whether there is excessive reliance on very small ticket size, which may result
in difficult and costly recoveries. To illustrate, the ticket size of housing loans is generally
higher than that of personal loans. Hence in the construction of a housing loan asset pool
for say Rs. 10,000,000/- it may be easier to construct a pool with just 10 housing loans of
Rs. 1,000,000 each rather than to construct a pool of personal loans as the ticket size of
personal loans may rarely exceed Rs. 500,000/- per individual. Also to take this illustration
further, if one were to construct a pool of Rs. 10,000,000/- consisting of personal loans
of Rs. 100,000/- each, the larger number of contracts (100 as against one of 10 housing
loans of Rs. 10 lakh each) automatically diversifies the risk profile of the pool as compared
to a housing loan based asset pool.
Average original maturity of the pool : indicates the original repayment period and
whether the loan tenors are in line with industry averages and borrowers repayment
capacity. To illustrate, in a car pool consisting of 60-month contracts, the original
maturity and the residual maturity of the pool viz. number of remaining installments to
be paid gives a better idea of the risk of default of the pool itself. If in a pool of 100 car
loans having original maturity of 60 months, if more than 70% of the contracts have paid
more than 50% of the installments and if no default has been observed in such contracts,
this is a far superior portfolio than a similar car loan pool where 80% of the contracts have
not even crossed 5 installments.
Loan to Value (LTV) Ratio : Indicates how much % value of the asset is financed by
borrowers own equity. The lower the LTV ratio, the better it is. This ratio stems from
the principle that where the borrowers own contribution of the asset cost is high, the
chances of default are lower. To illustrate for a vehicle costing Rs. 50 lakhs, if the borrower
has himself contributed Rs. 40 lakhs and has taken only Rs. 10 lakhs as a loan, he is going
to have lesser propensity to default as he would lose an asset worth Rs. 50 lakhs if he
defaults in repaying an installment. This is as against a borrower who may meet only Rs. 5
lakhs out of his own equity for a vehicle costing Rs. 50 lakhs. Between the two scenarios
given above, the latter would have higher risk of default than the former.
Average seasoning of the pool : Indicates whether borrowers have already displayed
repayment discipline. To illustrate, in the case of a personal loan, if a pool of assets
consists of those who have already repaid 80% of the installments without default,
this certainly is a superior asset pool than the one where only 10% of the installments
have been paid. In the former case, the portfolio has already demonstrated that the
repayment discipline is far higher.
Default rate distribution : Indicates how much % of the pool and overall portfolio of the
originator is current, how much is in 0-30 DPD (days past due), 30-60 DPD, 60-90 DPD and
so on. The rationale here is very obvious - as against 0-30 DPD, the 60-90 DPD is certainly
a higher risk category.
Unlike in plain vanilla instruments, in securitisation transactions, it is possible to work
towards a target credit rating, which could be much higher than the originators own
credit rating. This is possible through a mechanism called Credit enhancement and is
fulfilled by filtering the underlying asset classes and applying selection criteria, which
further diminishes the risk inherent for a particular asset class. The purpose of credit
enhancement is to ensure timely payment to the investors, if the actual collections
from the pool of receivables for a given period are short of the contractual payouts on
securitisation. Securitisation is normally a non-recourse instrument and therefore, the
repayment on securitisation would have to come from the underlying assets and the
credit enhancement. Therefore, the rating criteria centrally focuses on the quality of the

Limited recourse, delinquency and credit risk


Securitised transactions are normally backed by pool of receivables and credit
enhancement as stipulated by the rating agency, which differ from issue to issue. The
credit enhancement stipulated represents a limited loss cover to the Investors. These
certificates represent an undivided beneficial interest in the underlying receivables and
there is no obligation of either the Issuer or the Seller or the originator, or the parent or
any affiliate of the seller, issuer and originator. No financial recourse is available to the
certificate holders against the investors representative. Delinquencies and credit losses
may cause depletion of the amount available under the credit enhancement and thereby
the investor payouts may get affected if the amount available in the credit enhancement
facility is not enough to cover the shortfall. On persistent default of an obligor to repay
his obligation, the servicer may repossess and sell the underlying asset. However many
factors may affect, delay or prevent the repossession of such asset or the length of time
required to realize the sale proceeds on such sales. In addition, the price at which such
asset may be sold may be lower than the amount due from that obligor.
Risks due to possible prepayments: Weighted Tenor / Yield
Asset securitisation is a process whereby commercial or consumer credits are packaged
and sold in the form of financial instruments. Full prepayment of underlying loan
contract may arise under any of the following circumstances :

Obligor pays the receivable due from him at any time prior to the scheduled
maturity date of that receivable; or

Receivable is required to be repurchased by the seller consequent to its inability to


rectify a material misrepresentation with respect to that receivable; or

The servicer recognizing a contract as a defaulted contract and hence repossessing


the underlying asset and selling the same; or

In the event of prepayments, investors may be exposed to changes in tenor and


yield.

Bankruptcy of the originator or seller


If originator becomes subject to bankruptcy proceedings and the court in the
bankruptcy proceedings concludes that the sale from originator to Trust was not a sale
then an investor could experience losses or delays in the payments due. All possible care
is generally taken in structuring the transaction so as to minimize the risk of the sale
to Trust not being construed as a True Sale. Legal opinion is normally obtained to the
effect that the assignment of Receivables to Trust in trust for and for the benefit of the
Investors, as envisaged herein, would constitute a true sale.
Bankruptcy of the investors agent
If an investors agent becomes subject to bankruptcy proceedings and the court in the
bankruptcy proceedings concludes that the recourse of investors agent to the assets/
receivables is not in its capacity as agent/Trustee but in its personal capacity, then
an investor could experience losses or delays in the payments due under the swap
agreement. All possible care is normally taken in structuring the transaction and drafting
the underlying documents so as to provide that the assets/receivables if and when held
by investors agent is held as agent and in Trust for the investors and shall not form part
of the personal assets of investors agent. Legal opinion is normally obtained to the effect
that the investors agents recourse to assets/receivables is restricted in its capacity as
agent and Trustee and not in its personal capacity.
Credit Rating of the Transaction / Certificate
The credit rating is not a recommendation to purchase, hold or sell the certificate in
as much as the ratings do not comment on the market price of the certificate or its
suitability to a particular investor.
There is no assurance by the rating agency either that the rating will remain at the same
level for any given period of time or that the rating will not be lowered or withdrawn
entirely by the rating agency.
Risk of Co-mingling

The servicers normally deposit all payments received from the obligors into the
collection account. However, there could be a time gap between collection by a servicer
and depositing the same into the collection account especially considering that some
of the collections may be in the form of cash. In this interim period, collections from the
Loan Agreements may not be segregated from other funds of the servicer. If the servicer
fails to remit such funds due to investors, the investors may be exposed to a potential
loss.
Risk factors associated with processing of transaction through Stock Exchange
Mechanism:

m) Specific Risk Factors associated with investments in JM Tax Gain Fund


Apart from the risk factors mentioned above, the investors in JM Tax Gain Fund
would face the following risks:

i.

The Scheme may not be able to invest in the suitable securities falling within
its investment parameters leading the Scheme to hold short term deposits of
scheduled commercial banks till the monies are deployed as per the investment
objective of the Scheme or invest the same in other suitable securities leading to
substantial reduction in the earning capability of the Scheme.

ii.

In the event of an inordinately large number of redemption requests, the Scheme


may face an asset-liability mismatch requiring the investment manager to make a
distress sale of the securities leading to realignment of the portfolio consequently
resulting in investment in liquid instruments.

The trading mechanism introduced by the stock exchange(s) is configured to accept


and process transactions for mutual fund units in both Physical and Demat Form. The
allotment and/or redemption of Units through NSE and/or BSE, on any Business Day
will depend upon the modalities of processing viz. collection of application form, KYC
documentation, order processing/ settlement, etc. upon which the Fund has no control.
Moreover, transactions conducted through the stock exchange mechanism shall be
governed by the operating guidelines and directives issued by respective recognized
stock exchange(s).

n) Specific Risk Factors associated with investments in JM Core 11 Fund

v) Risks associated with Short Selling and Securities Lending -

The risks in lending portfolio securities, as with other extensions of credit, consist
of the failure of another party, in this case the approved intermediary, to comply
with the terms of agreement entered into between the lender of securities i.e. the
Scheme and the approved intermediary. Such failure to comply can result in the
possible loss of rights in the collateral put up by the borrower of the securities, the
inability of the approved intermediary to return the securities deposited by the
lender and the possible loss of any corporate benefits accruing to the lender from
the securities deposited with the approved intermediary.

iii. The tax benefits available to investors in accordance with the ELSS Guidelines may
be withdrawn / changed in future from time to time as may be decided by the
Central Board of Direct Taxes.
Apart from the risk factors mentioned above, the investors in JM Core 11 Fund
should note that the Scheme is designed for investment in only 11 stocks at any
point of time and as such the performance of these stocks would have a direct
bearing on the performance of Scheme. Unitholders should also note that as there
will be concentration of investments in only 11 stocks, the Scheme carries the risk of
non-diversification. Therefore, the NAV of this Scheme would be dependent upon
the performance and market price movement of such companies in the Scheme
and will be more volatile compared to the NAV of a scheme with more diversified
portfolio.

Scheme Specific Risk Factors (Equity)

RISK MITIGATION MEASURES FOLLOWED:

l)

Risk specific to Sector Scheme (JM Basic Fund)

A Unitholder in JM Basic Fund should note that these Schemes are designed as
Sectoral Scheme with the aim to invest only in the Sector specified in the Scheme
Information Documents and as such the performance of the sector would have a
direct bearing on the performance of Scheme Unitholders should also note that
there might be concentration of investments in companies of the basic industries
thereby carrying the risk of non-diversification. Therefore, the NAV of this Scheme
would be dependent upon the performance and market price movement of such
companies in the sector. Hence the movement in the NAV of this Scheme will be
more volatile compared to the NAV of a scheme with more diversified portfolio.

Risk management is an integral part of the investment process. The AMC incorporates
adequate safeguards for controlling risks in the portfolio construction process, which
would be periodically evaluated. Online monitoring of various exposure limits are done
by the Front Office System. The system incorporates all the investment restrictions
as per SEBI guidelines and soft warning alerts at appropriate levels for preemptive
monitoring. The system also enables identifying & measuring the risk through various
risk measurement tools and analyzes the same so as to act in a preventive manner. In
addition to minimize the major risks for equity & debt schemes, the following steps are
taken

The performance of JM Basic Fund is being benchmarked against BSE 200.

The investment universe of the Scheme(s) shall be those companies appearing


in the selected benchmark indices. However, the exposure to any company shall
be restricted at 10% of NAV or sector weightage at the time of investment. The
Scheme(s) may also invest in the companies of sectors which are outside these
indices/universe and such exposure per such company will be restricted to 10%
of the NAV. However, such companies classified under the sector would be those
which are publicly recognized under that sector and / or by agencies like AMFI/ NSE/
BSE. Investors may note that they cannot invest directly into the benchmark indices.

Tracking Error

Market Risk / Volatility Risk Risk of adverse price movements in the portfolio
The overall volatility of the respective portfolios would be maintained in line with the
objective of the scheme. The portfolio would be adequately diversified to mitigate
volatility depending on its respective mandate. Volatility would be monitored on with
respect to the benchmark and peer set.
Concentration Risk - Risk of undue concentration in single stock
The AMC has investment policy in place that ensures that the equity portfolios are
reasonably diversified in line with the objective of the scheme. JM Core 11 fund will be
an exception to the above since the fund invests only in 11 stocks. Hence its volatility and
concentration risk will be higher. The investors of the respective schemes are apprised
of the same.

Tracking errors are inherent in any sectoral / index fund and such errors may cause the
Schemes to generate returns which are not in line with the performance of the BSE 200
or one or more securities covered by / included in the said customized indices and may
arise from a variety of factors including but not limited to:

The scheme may also use derivatives and other hedging instruments, as permitted, from
time to time, in order to protect the value of the portfolio.

i.

Any delay in the purchase or sale of shares due to illiquidity in the market, settlement
and realisation of sales proceeds, delay in registration of securities or in receipt and
consequent reinvestment of dividends, etc.

ii.

The indices reflect the prices of securities at a point in time, which is the price at the
close of business day on The Stock Exchange, Mumbai / National Stock Exchange.
The Schemes however, may trade these securities at different points in time during
the trading session and therefore the prices at which the Schemes trade may not be
identical to the closing price of each scrip on that day on the BSE / NSE. In addition,
the Schemes may opt to trade the same securities on different exchanges due to
price or liquidity factors, which may also result in traded prices being at variance,
from BSE / NSE closing prices.

Depending on the mandate of the respective equity schemes, some part of the scheme
is invested in large cap stocks which are actively traded and thereby liquid. The fund
manager may also keep some portion of the portfolio in debt and money market
instruments and/or cash within the specified asset allocation framework for the purpose
of meeting redemptions. The overall liquidity of the schemes are monitored periodically
and necessary action taken on the portfolios if required. The debt/money market
instruments that are invested by the fund also has a short term duration.

iii. BSE may drop existing securities that are represented in their respective indices
or include new ones. In such an event, the Schemes will endeavor to reallocate its
portfolio to mirror the changes. However, the reallocation process may not occur
instantaneously and permit precise mirroring of the said customized indices during
this period.
iv. The potential of trades to fail may result in the Schemes not having acquired the
security at the price necessary to mirror the indices.
v.

Transaction and other expenses, such as but not limited to brokerage, custody,
trustee and asset management fees.

vi. There will be times when the Schemes may not be able to acquire or sell the desired
number of securities due to conditions prevailing in the securities market such as,
but not restricted to : circuit filters, delisting of securities, liquidity and volatility in
security prices.

Liquidity Risk Risk if liquidity impact of entering/exiting the underlying stocks


in the portfolio.

Scheme Specific Risk Factors (Debt)


Specific Risk Factors associated with investments JM MIP Fund
Risk related to Equity & Equity related securities
A Unitholder in the Scheme which invests in equity and equity related instruments
should be aware of the risks generally associated with investments in the equity
and equity related securities. Below are some of the common risks associated with
investments in equity and equity related securities.
As these Schemes propose to invest in equities and equity related instruments, they will
be subjected to normal risks associated with equity markets.
NAV of these Schemes are linked to equity performance of the companies in which they
invest.
Macroeconomic factors like changes in tax rates, political uncertainties, change in
government regulations etc. and industry specific factors like competition, demand
supply etc. could impact the performance of the companies in which the scheme invests.
Trading volumes, settlement periods and transfer procedures may restrict the liquidity
of these investments. The inability of the scheme(s) to make intended security purchases
due to settlement problems could also cause the scheme(s) to miss certain investment

opportunities.

4.

Applicable NAV and allotment of units:

The scheme(s) may also use various derivative and hedging products from time to time,
as would be available and permitted by SEBI, in an attempt to protect the value of the
portfolio and enhance unitholders interest.

The provisions of applicability of NAV and allotment of units in case of Direct Plan
will be as are currently applicable for the Normal Plan.

5.

Eligible investors / modes for applying: All categories of investors (whether existing
or new Unitholders), as permitted under the SID of the Schemes, are eligible to
subscribe under Direct Plan. Investments under Direct Plan can be made through
various modes offered by the Mutual Fund for investing directly with the Mutual
Fund {except Stock Exchange Platform(s) and all other Platform(s) where investors
applications for subscription of units are routed through Distributors}.

Risk Mitigation Measures Followed:


Risk management is an integral part of the investment process. The AMC incorporates
adequate safeguards for controlling risks in the portfolio construction process, which
would be periodically evaluated. Online monitoring of various exposure limits are
done by the Front Office System. The system incorporates all the investment restrictions
as per SEBI guidelines and soft warning alerts at appropriate levels for preemptive
monitoring. The system also enables identifying & measuring the risk through various
risk measurement tools and analyzes the same so as to act in a preventive manner. In
addition to minimize the major risks for equity & debt schemes, the following steps are
taken.
Credit Risk Risk of investing in unsustainable / weak companies

In depth credit evaluation of the money market and debt instruments (other than
GSecs) proposed to be invested in.

Issuer wise and Industry wise exposure limits

Independent rating of scheme portfolio by recognized rating agency.

Defining the minimum rating grades at position and portfolio level

6.

How to apply:

(a) Investors subscribing under Direct Plan of a Scheme will have to indicate Direct
Plan against the Scheme name in the application form/ transaction slip e.g. JM
Equity Fund (Direct).

(b) Investors may also indicate Direct in the ARN column of the application form/
transaction slip. However, in case Distributor/ Sub-broker code is mentioned in
the application form, but Direct Plan is indicated against the Scheme name or in
any other place or in any manner whatsoever in the Application Form/ transaction
slip, the Distributor/ Sub-broker code will be ignored and the application will be
processed under Direct Plan.

(c) Further, where application is received for Normal Plan without Distributor code
or Direct is mentioned in the ARN Column, the application will be processed
under the Direct Plan.

Interest Rate Risk Risk of bond prices falling as aresult of rise in interest rates

Active duration management

7.

Existing Investments:

Cap on Average Portfolio maturity depending upon the scheme objective and
Strategy.

Portfolio exposure spread over various maturities depending on the mandates of


the respective schemes

(a) Investors wishing to transfer their accumulated unit balance held under
Normal Plan (through lumpsum / systematic investments made with or without
Distributor code) to Direct Plan will have to switch /redeem their investments
(subject to applicable Exit Load, if any) and apply under Direct Plan.

(b) Investors who have invested without Distributor code and have opted for
Dividend Reinvestment facility under Normal Plan may note that the dividend
will continue to be reinvested in the Normal Plan only.

Liquidity Risk High impact cost at the time of buying/selling


Focus on good quality paper having good liquidity in the market at the time of
portfolio construction

Asset-Liability management

8.

Investments through systematic routes:

(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP)
etc. registered prior to the Effective Date without any distributor code under the
Normal Plan, installments falling on or after the Effective Date will automatically
be processed under the Direct Plan only.

INTRODUCTION OF DIRECT PLAN

In accordance with Para D titled Separate Option for direct investments under Circular
No. CIR/IMD/DF/21/2012 dated September 13, 2012 issued by Securities and Exchange
Board of India (SEBI), JM Financial Trustee Company Private Limited, (the Trustee to the
Mutual Fund), decided to introduce a separate plan for direct investments (i.e. investments
not routed through an AMFI Registration Number (ARN) Holder (Distributor) (hereinafter
referred to as Direct Plan) with effect from January 1, 2013 (the Effective Date) as under:

(b) Investors who had registered for SIP facility prior to the Effective Date with
distributor code shall continue under the Normal Plan. However if the investor
wishes that their future installments be invested into the Direct Plan, he shall
make a written request to the Mutual Fund in this behalf. The Mutual Fund will
take at least 15 Business days to process such requests. Intervening installments
will continue in the Normal Plan.

The scheme may also use derivatives and other hedging instruments, as permitted, from
time to time, in order to protect the value of the portfolio.
INFORMATION COMMON TO ALL SCHEMES

1.

Introduction of Direct Plan: Direct Plan is only for investors who purchase/subscribe
units in a Scheme directly with the Mutual Fund and is not available for investors who
route their investments through a Distributor.

In case of (a) and (b) above, the terms and conditions of the Normal registered
enrolment such as tenure , amount of the SIP etc. shall continue to apply.

Scheme eligibility: The Mutual Fund shall introduce Direct Plan in all the open-ended
schemes of the Mutual Fund (hereinafter referred as Schemes) except in the plans
discontinued for further subscriptions.

(c) In case of Systematic Transfer Facilities which were registered with a Distributor
Code under the Normal Plan prior to the Effective Date, the future installments
under the said Facilities shall continue as under the Normal Plan

2.

Plans / Options / Sub-options: All Plans / Options / Sub-Options being offered under
the Schemes (Normal Plan) will also be available for subscription under the Direct
Plan. Thus, from the Effective Date, there shall be 2 Plans available for subscription
under the Schemes viz., Normal Plan and Direct Plan. Portfolio of the Scheme under
the Normal Plan and Direct Plan will be common.

9. Redemption requests: Where Units under a Scheme are held under both Normal
and Direct Plans and the redemption / Switch request pertains to the Direct Plan, the
same must clearly be mentioned on the request (along with the folio number).

The provisions pertaining to Minimum Subscription Criteria, Load and Additional


Purchases will be applicable at Scheme (Portfolio) Level.

3.

Scheme characteristics: Scheme characteristics such as Investment Objective, Asset


Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and
conditions including load structure will be the same for the Normal Plan and the
Direct Plan, except that:

No exit load shall be charged for any switch of investments between Normal Plan
(whether the investments were made before or after the Effective Date) and Direct
Plan within the same scheme. The applicable exit load, if any, will be charged for
redemptions/ switch outs of the scheme (i.e. at portfolio level) before the completion
of the stipulated load/ lock-in period. The stipulated load/ lock-in period will be
reckoned from the date of allotment of units for a particular transaction in the scheme
(i.e. at portfolio level) till the date of redemption / switch out from that scheme,
irrespective of the number of intra-scheme switches by the investor between the
aforementioned two dates (e.g. switches between plans/sub-plans/options/suboptions within the scheme having the same portfolio)

In case such investors wish to invest under the Direct Plan through these facilities,
they would have to cancel their Normal enrolments and register afresh for such
facilities.

In the event of the investor not clearly mentioning the name of the Plan (Normal
or Direct)/ Option/ Sub-option/or wherever there is an ambiguity in choice of Plan
(Normal or Direct)/ Option/ Sub-option opted for in the request for redemption/
switch-out of all/specified amount/units, in the absence of clarificatory letter from
the investor on the day of the transaction, the AMC/ Registrar reserves the right to
process the redemption/switch out request from the Normal Plan or Direct Plan if
such redemption request can be processed in totality. In such case, the redemption
will first be effected from the Normal Plan.

E.g. If an investor has investment of Rs. 5 lakh in an Normal Plan and Rs. 10 lakh in the
Direct Plan and a redemption request is received from him for redemption of Rs. 2
lakh without indicating which Plan the redemption is to be effected from, the AMC/
Registrar will effect the redemption from the Normal Plan. In the same example, if
the redemption request was for Rs. 7 lakh, the redemption would be effected from
the Direct Plan.

However, in case it is not possible to effect the redemption from any one of the Plans
in totality i.e. either from the Normal or from the Direct Plan, such redemption request
will be treated as void ab-initio and rejected.

The extant provisions of applicability of load on redemptions/ switches from one


Scheme to another will continue to be applicable.

E.g. If the redemption request in the above example is for Rs. 12 lakh, the AMC /
Registrar will summarily reject the redemption request.

Direct Plan shall have a lower expense ratio excluding distribution expenses,
commission, etc and no commission for distribution of Units will be paid / charged
under Direct Plan.

Where units are held under any one i.e. under Normal or Direct Plan, the redemption
will be processed from such Plan.

10. Tax consequences: Switch / redemption may entail tax consequences. Investors

should consult their professional tax advisor before initiating such requests.
Surviving Plan and Suspended Plan
As per SEBI Circular no. CIR/IMD/DF/21/2012 dated September 13, 2012, with effect from
October 1, 2012, fresh subscriptions (including SIPs/Switches) shall be accepted under
only one plan of JM High Liquidity Fund, JM Floater Long Term Fund (previously known
as JM Floater Fund Long Tem Plan) and JM Short Term Fund (herein referred as surviving
plan) and not in any other plans (suspended plans).
The suspended plans are as follows:
Sr.
no.

Schemes

Plans

Options

JM High Liquidity Fund

Institutional
Plan

a. Daily Dividend
b. Weekly Dividend
c. Growth

Super
Institutional
Plan

a. Daily Dividend
b. Weekly Dividend
c. Growth

Regular
Plan

a. Daily Dividend
b. Dividend
c. Growth
a. Daily Dividend
b. Weekly Dividend
c. Dividend
d. Growth

JM Short term Fund

JM Floater Long Term


Fund (Earlier known as JM
Floater Fund - Long Term
Plan)

Premium
Plan

JM MIP Fund

Growth

Suspended
w.e.f
October
1, 2012

a. Capital
December
Appreciation
28, 2012
Withdrawal
b. Fixed Amount
Withdrawal
Any subscriptions received under the suspended plans of the aforesaid schemes, will be
processed under their surviving plans. Only redemptions/ switch outs will be permitted
in the suspended plans. Subscriptions received under the suspended plans or in case of
any ambiguity in transaction slip / absence of any clarificatory letter, the transactions will
be processed under the Surviving Plan only.

the discrepancy in the scheme name mentioned in the application form/transaction slip
and Cheque/Demand Draft.
Exchange Platforms:
SEBI vide its Circular No. SEBI/IMD/CIR No. 11/183204/2209 dated November 13, 2009
had facilitated transactions in Mutual Fund schemes through the stock exchanges
infrastructure. Also, vide Circular No. CIR/IMD/DF/17/2010 dated November 09, 2010, SEBI
had permitted routing of Mutual Fund transactions through the clearing members of the
registered stock exchanges and Depository Participants of registered Depositories. In view
of this and in order to increase the network and enhance the level of service to the investors
of JM Financial Mutual Fund, the Boards of JM Financial Asset Management Limited (the
AMC) and JM Financial Trustee Company Private Limited (the Trustees) decided to offer
an alternate platform to facilitate purchase (subscription) and redemption (repurchase)
of units of all the eligible schemes of the Mutual Fund. This facility is offered in terms of
the aforesaid SEBI circular and the guidelines issued by National Stock Exchange of India
Ltd. (NSE) and BSE Ltd. (BSE) in this regard.
Following are the exchange platforms through which investors can subscribe/redeem
the units of certain schemes:
a) Mutual Fund Service System (MFSS) introduced by NSE.
b) BSE Stock Exchange Platform (BSE StAR MF) introduced by BSE.
Features of the MFSS introduced by NSE:
a) MFSS is an online order collection system provided by NSE to its eligible members for
placing subscription or redemption orders on the MFSS, based on orders received
from the investors.
b) MFSS has been designed to provide a confirmation slip of the order(s) entered,
which would be deemed to be the time of receipt of application for the purpose of
determining the applicability of NAV.
c) MFSS facility shall be subject to such operating guidelines as may be issued by NSE
from time to time.
Features of the BSE StAR MF introduced by BSE:
a) The trading member of BSE can facilitate investors to subscribe and redeem the mutual
fund units using their existing network and order collection mechanism provided by
BSE.

The surviving plans of the Schemes have been renamed as under (hereinafter referred
to as surviving plans)

b) The transactions carried out on the BSE platform shall be subject to such guidelines
as may be issued by BSE and also SEBI (Mutual Funds) Regulations, 1996 and circulars/
guidelines issued thereunder from time to time.

JM High Liquidity Fund Regular Plan as JM High Liquidity Fund,

1) Basic points to be noted by the investors:

JM Floater Long Term Plan Regular Plan as JM Floater Long Term Fund

JM Short Term Fund Institutional Plan as JM Short Term Fund

i) Who can avail of this facility and is it available for all modes//options of
investment?:

This facility is available for purchase (subscription) and redemption (repurchase) of


units of the aforesaid eligible schemes to the existing and new investors. The
list of aforesaid schemes is subject to change from time to time.

This facility is available only to Corporate investors, individuals, HUF and Minors
acting through a guardian, who are Resident in India.

This facility is not available to Societies/Trusts/Overseas Corporate Bodies (OCBs)/


Partnership Firms, etc.

With respect to re-investment of dividend in the aforesaid schemes the following is


effective:

Dividend Reinvestment sub-option shall not be available to investors for


transacting through stock exchange in demat form.

1.

This facility is not available for switching of units or facilities like SWP/STP.

Currently, this facility can be availed only for the purpose of redemption, in case
of Direct Plans. As and when permitted by the Exchanges, this facility may also
be available for purchase (subscription).

The suspended plans mentioned in the table above will continue till the existing investors
remain invested in the plans.
From November 1, 2012, all Systematic Investment Plans (SIPs), Systematic Transfer Plans
(STPs), Dividend Reinvestment Facilities of the Suspended Plans will automatically stand
discontinued. However, the investor may opt for investment in Surviving Plan or any
other scheme of JM Financial Mutual Fund by registering for fresh SIPs/STPs/ Dividend
Reinvestment.

Dividend accrued (if any) under any Dividend Option (Dividend Re-investment being
its sub option) of the suspended plans shall be re-invested in the corresponding
options under the surviving plans of the respective Schemes, if such dividend per
folio, per occasion is upto Rs. 2000/-. In such scenario, the same folio number will have
units in two plans, i.e. units created till October 31, 2012 in suspended plans and units
created from November 01, 2012 in the surviving plans. Investors are requested to
mention the specific plan/option while submitting any transaction requests.

In case, such dividend is more than Rs. 2000/- per folio, per occasion, the same shall
be considered for dividend payout.

2.

For the above re-investment of dividend in surviving plans, the minimum investment
amount criteria/lock in period/load structure applicable for purchases/switch in
under the surviving plans shall not apply. However, the minimum redemption
amount/units criteria under the surviving plans shall apply.

ii) Whom should the investor approach for transacting in units of the eligible
schemes of the Mutual Fund?:

Option for holding the units:


Units shall be allotted in physical form or dematerialised form as per the request of
the investor.

Investors have an option to hold the units in physical or dematerialized form.

International Security Identification Number (ISIN) in respect of each plans/options


of the aforesaid schemes have been created and admitted in the National Securities
Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL).

i)

Purchase of units:

In case of fresh/additional purchase:


Pursuant to Association of Mutual Funds in India (AMFI) Best Practice Guidelines Circular
No. 48/2014-15 dated June 24, 2014, the investors are hereby informed that in case of
fresh/additional purchases, if the name of a particular Scheme on the application form/
transaction slip differs from the name on the Cheque/Demand Draft (payment instrument),
then (the AMC) shall process the application and allot units at the applicable Net Asset
Value of the scheme mentioned in the application form/transaction slip duly signed by
the investor, given that the same constitutes a valid legal document between the investor
and the AMC.

The investor has to approach a trading member of NSE and BSE who are registered
with Association of Mutual Funds in India (AMFI) as Mutual Fund Advisors and who
are empanelled as a distributor with the AMC and also registered with NSE and BSE as
Participants (AMFI certified stock exchange brokers) for MFSS and BSE StAR Platform.

a)

Physical Form:

The investor who chooses the physical mode is required to submit all requisite
documents along with the purchase application (subject to applicable limits
prescribed by BSE/NSE) to the Participants.

The Participants shall verify the application and documents for mandatory details

The AMC reserves the right to call for other additional documents as may be required, for
processing such transactions. The AMC also reserves the right to reject such transactions.
The AMC, thereafter, shall not be responsible for any loss suffered by the investor due to

and KYC compliance.


After completion of the verification, the purchase order will be entered in the
Stock Exchange system and an order confirmation slip will be issued to investor.

The investor will transfer the funds to the Participants.

Allotment details will be provided by the Participants to the investor.

b) Dematerialised form:

guidelines issued by SEBI in this regard. With respect to investors who transact through
stock exchange, applicable NAV shall be reckoned on the basis of the time stamping as
evidenced by confirmation slip given by stock exchange mechanism and subject to receipt
of funds by AMC/Mutual Fund before the cut off time of the respective schemes.
Investors should get in touch with Investor Service Centres (ISCs) of the Mutual Fund for
further details.
For any complaints or grievances against the Eligible Stock Broker with respect to the
transactions done through the stock exchange infrastructure, the investor should contact
either the concerned Eligible Stock Broker or the investor grievance cell of the respective
stock exchange.

The investors who intend to deal in depository mode are required to have a
demat account with CDSL/NSDL.

The investor who chooses the depository mode is required to place an order for
purchase of units (subject to applicable limits prescribed by BSE/NSE) with the
Participants.

The investor should provide their depository account details to the Participants.

Applicability of Net Asset Value (NAV) and allotment of units under the Bonus Option:

The purchase order will be entered in the Stock Exchange system and an order
confirmation slip will be issued to investor.

The investor will transfer the funds to the Participants.

Allotment details will be provided by the Participants to the investor.

Units will be allotted for valid applications received before cut off time (subject to
provisions on realization of funds) under Bonus Option of the respective Plan i.e. Normal
Plan/Direct Plan at the NAV of the corresponding Plan under the Growth Option on the
dates of investment(s) in respective Schemes. Thereafter, separate NAVs will be calculated
and published for Bonus Option in that Plan. Eg: If transaction is received under the Bonus
Option in the Normal/Direct Plan on June 30, 2014, then the transaction will be processed
at the applicable NAV of the Growth Option in the Normal/Direct Plan on the date of
investment in the respective Plan i.e. at the NAV applicable for transactions received on
June 30, 2014 (subject to adherance to cut-off timings).

ii) Redemption of units:


a) Physical Form:

The investor who chooses the physical mode is required to submit all requisite
documents along with the redemption application (subject to applicable limits
prescribed by BSE/NSE) to the Participants.

The redemption order will be entered in the Stock Exchange system and an
order confirmation slip will be issued to investor. Redemption orders would be
created either in terms of amount or quantity.

The redemption proceeds will be credited to the bank account of the investor,
as per the bank account details recorded with the Mutual Fund.

b) Dematerialised form:

The investors who intend to deal in depository mode are required to have a
demat account with CDSL/ NSDL and units converted from physical mode to
demat mode prior to placing of redemption order.

The investor who chooses the depository mode is required to place an order
for redemption (subject to applicable limits prescribed by BSE/NSE) with the
Participants. The investors should provide their Depository Participant with
Depository Instruction Slip with relevant units to be credited to Clearing
Corporation pool account.

The redemption order will be entered in the system and an order confirmation
slip will be issued to investor. Redemption orders would be created in terms of
units without any minimum limit and not in terms of amount.

The redemption proceeds will be credited to the bank account of the investor,
as per the bank account details recorded with the Depository Participant.

3) Investors shall receive redemption amount (if units are redeemed) and units (if units
are purchased) through broker/clearing members pool account. The Mutual Fund/
AMC would pay proceeds to the broker/clearing member (in case of redemption) and
broker/clearing member in turn to the respective investor and similarly units shall be
credited by AMC/Mutual Fund into broker/clearing members pool account (in case
of purchase) and broker/clearing member in turn to the respective investors demat
account.

Payment of redemption proceeds to the broker/clearing members by AMC/Mutual


Fund shall discharge AMC/Mutual Fund of its obligation of payment to individual
investor. Similarly, in case of purchase of units, crediting units into broker/clearing
member pool account shall discharge AMC/ Mutual Fund of its obligation to allot
units to individual investor.

4) Applications for purchase/redemption of units which are incomplete/invalid are liable


to be rejected.
5) In case of units held in demat form, the redemption request can be given only in
number of units and subject to the provision pertaining to minimum repurchase
amount.

The Trustee of the Mutual Fund reserves the right to change/modify the features of this
facility or discontinue this facility at a later date.

Applicability of Net Asset Value (NAV) and allotment of units under the Annual
Bonus Option:
Units will be allotted for valid applications received before cut off time (subject to
provisions on realization of funds) under Annual Bonus Option of the respective Plan i.e.
Normal Plan/Direct Plan at the NAV of the corresponding Plan under the Growth Option
on August 1, 2014, in respective Schemes. Thereafter, separate NAVs will be calculated and
published for Annual Bonus Option in that Plan and Annual Bonus Option shall be available
for subscription/redemption at NAV based prices on all business days.
If no subscription is received in Annual Bonus Option in any of the Plan(s) under the
Schemes on August 1, 2014, then in such case, for subscriptions received after August 1,
2014 in Annual Bonus Option, the NAV of corresponding Growth option under respective
Plan(s) of the Schemes will be applicable, based on time of receipt of application and
availability of funds for utilization by the Schemes (as applicable).
Allotment of Bonus units, if any, will not impact the total value of units held but would only
increase number of units held by investor. Pursuant to allotment of Bonus Units, the NAV of
units under the respective Bonus option would fall in proportion to bonus units allotted.
In terms of SEBI circular dated March 18, 2008, units issued as bonus units will not be
subject to exit load.
Investors are advised to consult their tax advisor to understand the tax implications for
subscribing to/redeeming the units of Annual Bonus Option.
Applicability of Net Asset Value (NAV) and allotment of units under the Half Yearly
Bonus Option & Quarterly Bonus Option:
Units will be allotted for valid applications received before the cut off time (subject to
provisions on the realization of funds) under Half Yearly and Quarterly Bonus Option of the
respective Plan i.e. Normal Plan/Direct Plan at the NAV of the corresponding Plan under
the Growth Option on the effective date, in respective Schemes. Thereafter, separate NAVs
will be calculated and published for Half Yearly and Quarterly Bonus Options in that Plan
and the said options shall be available for subscription/redemption at NAV based prices
on all business days.
If no subscription is received in Half Yearly and Quarterly Bonus Option in any of the Plan(s)
under the Schemes on the effective date, then in such case, for subscriptions received after
the effective date in Half Yearly and Quarterly Bonus Option, the NAV of corresponding
Growth option under respective Plan(s) of the Schemes will be applicable, based on time of
receipt of application and availability of funds for utilization by the Schemes (as applicable).
Allotment of Bonus units, if any, will not impact the total value of units held but would only
increase number of units held by investor. Pursuant to allotment of Bonus Units, the NAV of
units under the respective Bonus option would fall in proportion to bonus units allotted.
In terms of SEBI circular dated March 18, 2008, units issued as bonus units will not be
subject to exit load.

6) Separate folios will be allotted for units held in physical and demat mode. In case
of non-financial requests/applications such as change of address, change of bank
details, etc. investors should approach Investor Service Centres (ISCs) of the Mutual
Fund if units are held in physical mode and the respective Depository Participant(s)
if units are held in demat mode. In case of KYC compliant investors, the non-financial
requests/applications shall be submitted by the investors to their respective KYC
Registration Agencies (KRAs).

Investors are advised to consult their tax advisor to understand the tax implications for
subscribing to/redeeming the units of the Half Yearly and Quarterly Bonus Option of the
above mentioned Schemes.

Investors will have to comply with Know Your Customer (KYC) norms as prescribed by BSE/
NSE/ CDSL/ NSDL and the Mutual Fund to participate in this facility.

A. Equity Schemes

The Mutual Fund will not be in a position to accept any request for transactions or service
requests in respect of units bought under this facility in demat mode.

The bonus declaration is subject to earnings and the amount standing to the credit of the
reserves of the Bonus Option of the Scheme.

Applicable NAV
For subscription (purchase)/switch-in:

In case of availing this facility for the New Fund Offers (NFOs), the units will be allotted
directly to the investors by the Registrar and Transfer Agent (RTA). Also, NFO refunds will
be made directly to the bank account of the investors by the RTA.

In respect of valid applications received upto 3 p.m. by the Mutual Fund at any of its
Investor Service Centers alongwith a local cheque or a demand draft payable at par at
the place where the application is received, the closing NAV of the business day on which
application is received shall be applicable.

The cut off timing and applicability of Net Asset Value (NAV) shall be subject to the

In respect of valid applications received after 3 p.m. by the Mutual Fund alongwith a local

cheque or a demand draft payable at par at the place where the application is received,
the closing NAV of the next business day shall be applicable.
Effective October 1, 2012, under all equity schemes, in respect of application for purchase/
switch-in of units of an amount equal to or more than Rs. 2 lakhs, the closing NAV of the
day on which the funds are available for utilisation shall be applicable provided that

eligible for NAV of the business day on which the redemption requests are time-stamped
upto the cut-off time at the ISC for all schemes other than liquid schemes. Under Liquid
Schemes if transactions are time-stamped upto the cut-off time, NAV of the calendar day
prior to next business day would be applied for redemption cases.
REDEMPTION/SWITCH OUT FROM JM TAX GAINS FUND

i. Application for purchase/switch-in is received before the applicable cut-off time i.e.
3.00 p.m.

Redemption/Switch-out option under JM Tax Gains Fund will be available only after
completion of lock-in period as per ELSS guidelines i.e 3 years.

ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of the respective schemes before
the cut-off time.

Units held in demat form (applicable for all schemes):

iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective scheme.
In terms of SEBI Circular dated September 13, 2012 and AMFI Best Practice Guidelines dated
February 18, 2013, all transactions, as per the conditions given below, will be aggregated
and closing NAV of the day on which funds are available for utilization will be applied,
provided the aggregated amount of the investment is Rs. 2 lacs and above.

Investors who hold units in demat form and wish to redeem their units, then redemption
procedure has to be followed. For details on the procedure, kindly refer SID.
Redemption/switch out requests from the Merging Schemes:
The following schemes of the Mutual Fund were merged:
Sr. no.

Marging Schemes

Merged Schemes

JM HI FI Fund and JM Agri and Infra Fund

JM Basic Fund

JM Mid Cap Fund, JM Small & Midcap Fund


and JM Contra Fund

JM Multi Strategy Fund

JM Financial Services Sector Fund, JM Telecom


Sector Fund and JM Large Cap Fund

JM Equity Fund

JM Nifty Plus Fund

JM Equity Fund

JM Emerging Leaders Fund

JM Multi Strategy Fund

a. All transactions are received on the same business day (as per cut off timing and time
stamping rules). Transactions received after the cut-off timing will be deemed to have
been received on the next business day and aggregated accordingly.
b. Aggregation of transactions shall be applicable for all open ended non liquid schemes
of the Mutual Fund.
c. Transactions shall include purchases, additional purchases, but will exclude Switches,
Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) transactions.
d. Aggregations will be done on the basis of investor/s PAN. In case of joint holding,
transactions with similar holding structures will be aggregated, similar to the principle
applied for compilation of Consolidated Account Statement (CAS).
e. All transactions will be aggregated where investor holding pattern is same as stated
above, irrespective of whether the amount of the individual transaction is above or
below Rs 2 lacs.
f.

Only transactions in the same scheme (at portfolio level) will be clubbed. This will
include transactions at option level (Dividend, Growth and Direct).

g. Transactions in the name of minor received through guardian will not be aggregated
with the transaction in the name of same guardian.
However, in respect of valid applications with outstation cheques/ demand drafts not
payable at par at the place where the application is received, closing NAV of the business
day on which cheque/demand draft is credited shall be applicable.
In terms of SEBI Circular dated September 13, 2012 and AMFI Best Practice Guidelines dated
February 18, 2013, all transactions, as per the conditions given below, will be aggregated
and closing NAV of the day on which funds are available for utilization will be applied,
provided the aggregated amount of the investment is Rs. 2 lacs and above.
a. All transactions are received on the same business day (as per cut off timing and time
stamping rules). Transactions received after the cut-off timing will be deemed to have
been received on the next business day and aggregated accordingly.
b. Aggregation of transactions shall be applicable for all open ended non liquid schemes
of the Mutual Fund.
c. Transactions shall include purchases, additional purchases, but will exclude Switches,
Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) transactions.

In case of any request for redemption/switch-out from the above Merging Scheme/s of
the Mutual Fund, the AMC may at its discretion process the same from the respective
Surviving Scheme/s at the applicable NAV of the respective Surviving Scheme/s on the
date of receipt of valid redemption/ switch-out request.
Eg: In case, the transaction slip reflects redemption/switch out from JM Agri and Infra
Fund (Merging Scheme), then such request shall be processed from JM Basic Fund
(Surviving Scheme). The AMC will be discharged of its obligations on processing of
requests as stated above.
B. Debt/ LIQUID Schemes
For subscription (purchase)/switch-in:
1. Liquid Schemes - JM High Liquidity Fund and JM Floater Short Term Fund:
i.

where the application is received upto 2.00 p.m. on a day and funds are available for
utilization before the cutoff time without availing any credit facility whether, intra-day
or otherwise, the applicable NAV shall be the closing NAV of the day immediately
preceding the day of receipt of application;

ii. where the application is received after 2.00 p.m. on a day and funds are available
for utilization on the same day without availing any credit facility whether, intra-day
or otherwise, the applicable NAV shall be the closing NAV of the day immediately
preceding the next business day; and
iii. irrespective of the time of receipt of application, where the funds are not available for
utilization before the cutoff time, without availing any credit facility whether, intra-day
or otherwise, the applicable NAV shall be the closing NAV of the day immediately
preceding the day on which the funds are available for utilization.

d. Aggregations will be done on the basis of investor/s PAN. In case of joint holding,
transactions with similar holding structures will be aggregated, similar to the principle
applied for compilation of Consolidated Account Statement (CAS).

For allotment of units in respect of purchase of/switch in to JM High Liquidity Fund and
JM Floater Short Term Fund (liquid schemes), it shall be necessary that:

e. All transactions will be aggregated where investor holding pattern is same as stated
above, irrespective of whether the amount of the individual transaction is above or
below Rs 2 lacs.

ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of liquid schemes before the cut-off
time of 2 p.m.

f.

Only transactions in the same scheme (at portfolio level) will be clubbed. This will
include transactions at option level (Dividend, Growth and Direct).

iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective liquid schemes.

g. Transactions in the name of minor received through guardian will not be aggregated
with the transaction in the name of same guardian.

2. Debt Schemes - JM MIP Fund, JM Money Manager Fund, JM Floater Long Term Fund,
JM Short Term Fund, JM Income Fund and JM G-Sec Fund, in respect of purchase of
units for Rs. 2 lakh or more:

For redemption (sale)/ switch out:


At the applicable NAV subject to the deduction/ charge of exit loads as prescribed at the
time of respective investments.
(i) For Equity schemes
Redemption request can be submitted to the official point of acceptance on any business
day till 3.00 pm. In respect of valid applications received upto 3 p.m. by the Mutual Fund,
same days closing NAV shall be applicable. In respect of valid applications received after
3 p.m. by the Mutual Fund, the closing NAV of the next business day shall be applicable.
It is clarified that the cut off timings will also be applicable to investments made through
sweep mode.
Unit held in physical form:
The investors holding units in physical form may submit their redemption/ switch requests
duly signed by all the holders (as per the mode of holding) at any of the Investor Service
Centers (ISC) of Registrar & Transfer Agent viz., M/s Karvy Computershare Pvt. Ltd. or JM
Financial Asset Management. Ltd. latest by 3.00 p.m. on any business day. Such cases will be

i.

Application is received before the applicable cut-off time of 2 p.m.

In terms of SEBI Circular dated September 13, 2012 and AMFI Best Practice Guidelines dated
February 18, 2013, all transactions, as per the conditions given below, will be aggregated
and closing NAV of the day on which funds are available for utilization will be applied,
provided the aggregated amount of the investment is Rs. 2 lacs and above.
a. All transactions are received on the same business day (as per cut off timing and time
stamping rules). Transactions received after the cut-off timing will be deemed to have
been received on the next business day and aggregated accordingly.
b. Aggregation of transactions shall be applicable for all open ended non liquid schemes
of the Mutual Fund.
c. Transactions shall include purchases, additional purchases, but will exclude Switches,
Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) transactions.
d. Aggregations will be done on the basis of investor/s PAN. In case of joint holding,
transactions with similar holding structures will be aggregated, similar to the principle
applied for compilation of Consolidated Account Statement (CAS).

e. All transactions will be aggregated where investor holding pattern is same as stated
above, irrespective of whether the amount of the individual transaction is above or
below Rs 2 lacs.
f.

Only transactions in the same scheme (at portfolio level) will be clubbed. This will
include transactions at option level (Dividend, Growth and Direct).

g. Transactions in the name of minor received through guardian will not be aggregated
with the transaction in the name of same guardian.

For allotment of units in respect of purchase of/switch in to the aforementioned


schemes/ plans, it shall be necessary that:

i.

Application is received before the applicable cut-off time i.e. 3.00 p.m.

ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of the respective schemes before
the cut-off time.
iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective scheme
3. Debt Schemes - JM MIP Fund, JM Money Manager Fund, JM Floater Long Term Fund,
JM Short Term Fund, JM Income Fund and JM G-Sec Fund, in respect of purchase of
units for less than Rs. 2 lakh:
Where the application is received up to 3.00 pm with a local cheque or demand draft
payable at par at the place where it is received closing NAV of the day on which the
application is received;
Where the application is received after 3.00 pm with a local cheque or demand draft
payable at par at the place where it is received closing NAV of the next business day; and
Where the application is received with an outstation cheque or demand draft which is not
payable on par at the place where it is received closing NAV of day on which the cheque
or demand draft is credited.
The aforesaid provisions are applicable for prospective transactions and shall also apply
to existing as well as fresh SIP and STP transactions.
Effective October 1, 2012, under all Debt schemes (other than liquid schemes), in respect
of application for purchase/switch-in of units of an amount equal to or more than Rs. 2
lakhs, the closing NAV of the day on which the funds are available for utilisation shall be
applicable provided that
i. Application for purchase/switch-in is received before the applicable cut-off time i.e.
3.00 p.m.
ii. Funds for the entire amount of subscription/purchase as per the purchase application/
switch in request are credited to the bank account of the respective schemes before
the cut-off time.

existing folio held by him, where the scheme name is clearly mentioned but the name
of the Plan/Option is not specified, the AMC may, at its discretion, allot units in the Plan/
Option where he had made investment in the past i.e. such Plan/Option of the scheme
will be treated as the default Plan/Option , in the absence of any specific written signed
instructions/clarificatory letter from the unit holder/s concerned, received on the date of
such investment. Such investments will also be subject to the load structure and lock-in
of the respective default Plan/Option.
In case, the investor has not mentioned the plans/ sub-plans etc or has incompletely/
illegibly mentioned the plans/sub-plans etc. in the purchase/redemption/switch request
(specifically where he is having holdings in various plans/sub-plans etc.) of the particular
scheme, the AMC will summarily reject such requests if the investor has not furnished any
clarification in writing, duly signed, on the date of transaction itself, during normal office
hours. However, in case of purchase, where there is a mismatch in the amount mentioned
in the Purchase Application form/Transaction Slip and the payment instrument/credit
received, the AMC may at its discretion allot units for the lesser of the two amounts and
refund/utilize excess, if any, for any other transaction submitted by the same investor
subject to the fulfillment of other regulatory requirements for the fresh transaction.
No request for redemption/switch out will be processed/effected unless the scheme from
which redemption/switch out is sought to be effected, has received the funds.
In case, the investor does not mention the name of the Plan/ Option/ Sub-option/or
wherever there is an ambiguity in choice of Plan/ Option/ Sub option opted for purchase/
switch application(s), the AMC/ Registrar may allot the units as per default Plans/ Options/
Sub-options, if no clarification letter is provided by the investor on the transaction date.
However, in case of purchase application, the AMC/ Registrar at its discretion may allot
the units based on the Plan/ Option/ Sub-option appearing on the respective payment
instrument.
In case, there is complete ambiguity regarding the default Plans/ Options/ Sub-options,
the application will be treated as invalid and will be summarily rejected.
In case, investor applies for dividend payout option, for the scheme which does not have
dividend payout option, the application will be processed under dividend reinvestment
option and investor will be allotted units accordingly.
Where units under a Scheme are held both in the Normal Plan(s) as well as the Surviving
Plan and in the event of the investor not clearly mentioning the name of the Scheme/Plan/
Option/ Sub-option/or wherever there is an ambiguity in choice of Scheme/Plan/Option/
Sub-option opted for in the request for redemption/switch-out of all/specified amount/
units, in the absence of clarificatory letter from the investor on the day of the transaction,
the AMC/Registrar reserves the right to process the redemption/switch out request from
the Normal Plan(s) or Surviving Plan if such redemption request can be processed in totality.
In such case, the redemption will first be effected from the Normal Plan(s).

Debt Schemes:

E.g. If an investor has investment of Rs. 5 lakh in an Normal Plan and Rs. 10 lakh in the
Surviving Plan and a redemption request is received from him for redemption of Rs. 2 lakh
without indicating which Plan the redemption is to be effected from, the AMC/ Registrar
will effect the redemption from the Normal Plan. In the same example, if the redemption
request was for Rs. 7 lakh, the redemption would be effected from the Surviving Plan.

Redemption/Switch-out request can be submitted to the official point of acceptance on


any business day till 3.00 pm. In respect of valid applications received up to 3 p.m. by the
Mutual Fund, same days closing NAV shall be applicable. In respect of valid applications
received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day shall
be applicable.

However, in case it is not possible to effect the redemption from any one of the Plans in
totality i.e. either from the Normal or from the Surviving Plans, such redemption request
will be treated as void ab initio and rejected.
E.g. If the redemption request in the above example is for Rs. 12 lakh, the AMC / Registrar
will summarily reject the redemption request.

Liquid Schemes:

Where units are held under any one i.e. under Normal or Surviving Plan, the redemption
will be processed from such Plan.

iii. The funds are available for utilization before the cut-off time without availing any
credit facility whether intra-day or otherwise, by the respective scheme.
FOR REDEMPTION (SALE/ SWITCH OUT):

Redemption/Switch-out request can be submitted to the official point of acceptance on


any business day till 3.00 pm. In respect of valid applications received up to 3 p.m. by the
Mutual Fund, closing NAV of the day immediately preceding the next business days NAV
shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual
Fund, the closing NAV of the next business day shall be applicable.
Unit held in physical form:
The investors holding units in physical form may submit their redemption/ switch requests
duly signed by all the holders (as per the mode of holding) at any of the Investor Service
Centers (ISC) of Registrar & Transfer Agent viz., M/s Karvy Computershare Pvt. Ltd. or JM
Financial Asset Management Ltd. latest by 3.00 p.m. on any business day. Such cases will be
eligible for NAV of the business day on which the redemption requests are time-stamped
upto the cut-off time at the ISC for all schemes other than liquid schemes. NAV of the
calendar day prior to next business day would be applied for redemption cases under
Liquid Schemes if transactions are time-stamped upto the cut-off time.
Units held in demat form (applicable for all schemes):
Investors who hold units in demat form and wish to redeem their units, then redemption
procedure has to be followed. For details on the procedure, kindly refer SID.

The AMC may accept corrective letter from investor in case of any mistake on the part
of investor to put through the transaction if any such request is made on the date of
transaction.
Pursuant to Association of Mutual Funds in India (AMFI) Best Practice Guidelines Circular
No. 48/2014-15 dated June 24, 2014, the investors are hereby informed that in case of
fresh/additional purchases, if the name of a particular Scheme on the application form/
transaction slip differs from the name on the Cheque/Demand Draft (payment instrument),
then JM Financial Asset Management Limited (the AMC) shall process the application and
allot units at the applicable Net Asset Value of the scheme mentioned in the application
form/transaction slip duly signed by the investor, given that the same constitutes a valid
legal document between the investor and the AMC.
The AMC reserves the right to call for other additional documents as may be required, for
processing such transactions. The AMC also reserves the right to reject such transactions.
The AMC, thereafter, shall not be responsible for any loss suffered by the investor due to
the discrepancy in the scheme name mentioned in the application form/transaction slip
and Cheque/Demand Draft.

DEFAULT REDEMPTION/SWICH-OUT/PURCHASE/SWITCH-IN

In case of Direct Plan

In case, an Investor fails to mention the complete name of the scheme upto plan/ subplan level while making request for redemption/ switch-out, the AMC reserves the right
to redeem/ switch-out all/specified desired units/ value provided the investor is having
holdings only in one scheme/plan/option and the folio number is clearly mentioned or if
he maintains one folio. Otherwise, such incompletely filled requests would be summarily
rejected without processing.

(a) Liquid Scheme(s): Units shall be allotted for valid applications received before cut-off
time (subject to provisions on realization of funds) on any business day under Direct
Plan (the respective options) at the applicable Net Asset Value (NAV) of the Direct
Plan of the day prior to the next business day will be applicable.

In case, an existing unitholder of a scheme makes an additional investment in an

Applicability of NAV in case of liquid/ non-liquid schemes is as follows

(b) Non-Liquid Scheme(s): Units shall be allotted for valid applications received before
cut-off time (subject to provisions on realization of funds) on any business day under

Direct Plan (the respective options) at the applicable Net Asset Value (NAV) of the
Direct Plan of the same business day will be applicable.
Uniform process for processing of redemption/switch out for all the Schemes of
the Mutual Fund:
Pursuant to Association of Mutual Funds in India (AMFI) Best Practice Guidelines Circular
No.28/2012-13 dated May 15, 2012, unit holders shall note that application for redemption/
switch-out for units, for which funds are not realized via purchase or switch-in in the scheme
of the Mutual Fund, shall be liable to be rejected. In other words, redemption or switch
out of units will be processed only if the funds for such units are realized in the scheme,
by way of payment instructions/transfer or switch-in funding process.
Further, all switch funding shall be in line with redemption funding timelines adopted
by the concerned scheme i.e. if a scheme follows T+3 payout for redemption, the switch
out funding will also be made on T+3 and not earlier or later than T+3, where T is the day
of transaction.
Unitholders shall further note that the AMC at its sole discretion, may process redemption/
switch-out request partially, if funds for part of the units being redeemed/switched-out
are realised.
Redemption/switch out requests in the Bonus Options of Debt Schemes:
In case an investor holds units in both the Bonus sub-options i.e. Bonus Units and Principal
Units and in the event of the investor not clearly mentioning the name of the sub-option
or wherever there is an ambiguity in choice of sub-option opted for in the request for
redemption/switch-out and/or in the absence of clarificatory letter from the investor on
the day of the transaction, the AMC/ Registrar reserves the right to process the redemption/
switch out request from the Principal Units.
Redemption/Switch Provisions:
Investors are requested to note that in case of redemption/switch request, if the number
of units or the amount to be redeemed/switched out to any other Scheme of JM Financial
Mutual Fund, exceeds the number of outstanding units or value of outstanding units,
respectively, then JM Financial Asset Management Limited (the AMC) shall, at its
discretion, redeem/switch out all the outstanding units, if no clarificatory letter is received
from the respective investor on the date of the transaction.
SYSTEMATIC PLANS
SYSTEMATIC PLANS ARE AVAILABLE TO THE INVESTORS THROuGH Systematic
Investment Plan (SIP)/ Systematic Transfer Plan (STP) and Systematic Withdrawal Plan
(SWP)
The Terms and conditions of the Systematic Investment Plan (SIP)/ Systematic Transfer
Plan (STP) and Systematic Withdrawal Plan (SWP) being offered in terms of the Scheme
Information Document
All the terms and conditions (including the provisions of load structure & lock-in period)
applicable on the date of registration i.e. date of initial investment will also be applicable
for all future SIP/STP/SWP installments as well i.e. Registration concept except for Special
SIP where the terms and conditions (including load & lock-in period) applicable on the
date of first installment would be applicable for all future installments.
These facilities are available on the following days/dates
Facility

Daily

Weekly

Fortnightly

SIP

Not available

Not
available

Not
available

(Please use option


available in STP
facility as under)
STP

Available through
Chhota STP/Combo
SIP

1st , 8th,
15th, &
22nd

1st & 15th

SWP

Not Available

Not
available

Not
available

Monthly

Quarterly

1st, 5th ,

Ist of
month on
quarterly
basis

10th,
15th ,
20th , &
25th

An investor wishing to avail of the Systematic Investment Plan will have to mandatorily
abide by the following conditions in order to be treated as a valid SIP
Systematic Investment Plan (SIP ) Minimum no. of installments & Frequency
Frequency

Amount Per Installment


(Rs. in whole Numbers)

Minimum Mandatory
Installments*

Monthly

Rs. 500 to Rs. 999 per


month

12 or more out of which 10


installments must be effected

Monthly

Rs. 1000 or more per


month

6 or more out of which 5


installments must be effected

Quarterly

Rs. 3000 or more per


quarter

2 or more where atleast 1st 2


installments must be effected

* The above conditions are to be fulfilled in addition to other conditions for each SIP
cycle independently, failing which the respective SIP will be treated as invalid and will
be subject to refund/auto redemption/revertal & reprocessing etc as per the discretion
of the AMC. No two or more SIP cases will be clubbed to determine the fulfillment of
Minimum Investment Criteria

Perpetual SIP/STP/SWP
An investor who does not want to opt for any specific period, may opt for Perpetual SIP/
STP/SWP i.e. without mentioning any fixed period for his SIP/STP/SWP. Perpetual SIP/
STP/SWP can be cancelled/discontinued only on the written request of the investor or on
account of automatic discontinuation/cancellation in terms of provisions of the facility e.g.
failure of 5 continuous installments for a particular SIP date as set out above or sufficient
balance being unavailable in out-scheme in case of STP/SWP etc. AMC at its Discretion
may also treat the SIP as discontinued if the minimum number of SIP investments as per
the minimum Investment criteria are not completed within the stipulated time-frame and
may refund the amount after redeeming the outstanding units at current NAV.
Systematic Plans
SYSTEMATIC INVESTMENT PLAN (SIP)
SIP facility is available to investors in all the open ended of JM Financial Mutual Fund. This
facility is subject to changes from time to time.
Under this facility, by investing a fixed amount at regular interval, the Unitholders can take
advantage of the benefits of Rupee Cost Averaging, at the same time investing a fixed
amount regularly in a disciplined manner.
The Clause on Minimum Amount of subscription as specified in the Scheme Information
Document of the respective scheme/plan will not be applicable for investments made
through the first installment of Systematic Investment /Transfer Plan subject to the
fulfillment of minimum investment criteria and minimum installment criteria, during the
opted period through SIP/STP ( e.g.With atleast through 5 out of the first 6 installments
and 10 out of the first 12 installments in case of monthly SIP and minimum of first two
installments in case of quarterly SIP as the case may be) For example, the minimum
investment amount for 1st investment in JM Basic Fund is Rs.5,000/-. However, in case of
SIP, an investor can invest with minimum installment amount of Rs.1,000/-or Rs.500/- per
month so as to meet the Minimum Investment Amount over the opted period. i.e. 6/12
months respectively. The similar condition would apply to STP as well.
In case of a Regular SIP, the AMC will retain the initial investment made towards the 1st
SIP installment as normal investment if the same meets the minimum investment criteria
of the scheme concerned and will not refund even if it does not fulfill any of the criteria
stipulated for a valid SIP. However, the investor may redeem/ switch-out if he so wishes,
by submitting redemption/switch-out requests as per normal procedure.
In case, any of SIP/STP/SWP due dates fall on a Non-Business day, the NAV of the next
Business day will be applicable.
The features and other terms & conditions SIP are as under:
JM Financial Mutual Fund offers two types of Systematic Investment Plans i.e. Normal SIP
and Micro SIP on Monthly and Quarterly basis on any of the six SIP dates during any month
i.e. 1st, 5th, 10th, 15th, 20th or 25th.
I. Normal SIP: Under normal SIP, the investor is required to furnish copy of KYC
Acknowledgement & PAN Card in addition to other documents as mentioned
hereunder in subsequent points.
II. Micro SIP: Under Micro SIP, the investor is exempted to furnish the copy of PAN Card
provided his total contribution through Micro SIP (including all schemes/dates etc) does
not exceed Rs. 50,000/- during any financial year or on a rolling period of 12 months.
However, the investor is required to submit an attested copy of any of 13 identification
documents mentioned in the Key Information Memorandum. This facility is available
to individual investors including Minors & NRIs and Sole Proprietorship firms.. Other
categories including PIOs, HUFs, non-individuals etc are not eligible .. Micro SIP
investors have to be KYC compliant (through SEBI appointed KRA) and should attach
KYC form, proof of identity , address etc alongwith purchase application and cheque.
Please refer to para on KYC process.

The minimum investment criteria will not be applicable in case any Micro SIP
application is found to be invalid and the amount collected initially will remain in the
folio. However, redemption will be permitted for the same based on the request by
investor on the normal transaction slip.

Other terms and conditions of normal SIP remain unchanged and are applicable for
Micro SIP investors as well.

Investment under SIP (i.e. Normal SIP or Micro SIP) can be done through Regular SIP
or Special SIP

1. Regular SIP

In case of Regular SIP, the investor will have to attach a cheque/ Demand Draft towards
initial investment i.e. first installment. An investor can opt for Regular SIP and choose
Auto debit (ECS/Direct Debit/Standing Instructions or post dated cheques as the mode
of payments for subsequent installments.

2. Special SIP Facility


As an Investor-friendly measure and in order to simplify the procedure, an investor may


subscribe to SIP without even submitting the cheque/demand draft towards initial
investment i.e. first installment as is required under Regular SIP. The first installment will
also be debited through Auto Debit (through ECS/Direct Debit/ Standing Instructions)
process. While all other terms and conditions of Regular SIP will be applicable for
Special SIP as well except for the following changes:

i. No Cheque is required for initial investment i.e. first installment. Hence, it will work
like Zero balance account of any Bank.
ii. The allotment of units for first SIP installment will be made on the next opted SIP due

date out of the 6 SIP Dates (1st, 5th, 10th, 15th , 20th, 25th of every month) opted by
the investor , which would atleast be 30 days after the submission of valid application
form and other required documents, i.e. when his account will be debited for the first
time.
iii. The investment through Special SIP will be subject to the terms and conditions
(including loads etc) as are applicable to the Regular SIP on the Ist SIP due (debit) date
when his account will be debited for the first time and not as applicable on the date
of submission of valid SIP application with other required documents.
Modes of payment for SIP:
a. Auto Debit Facility:

To avail of the facility of Auto Debit (through ECS or Direct Debit or Standing
Instructions) for Regular SIP from the second SIP installment onwards and from 1st
installment for Special SIP, the applicant is required to give standing instructions
addressed to his bankers in the prescribed form to debit his bank accounts on the
opted due dates of SIP chosen by him and credit the installment amount to the Bank
Account of JM Financial Mutual Fund directly or through any of the service providers
appointed by the AMC. The contribution through Auto Debit Facility (through any of
the following modes) will start from Ist/IInd installment onwards in case of Special
& Regular SIP respectively as approx. 30 days time is required for registration of Auto
Debit Mandates with Investors Banks across India. For HDFC Bank Account Holders,
there is a separate Standing Instructions Form, which needs to be submitted instead
of normal Auto Debit Form.

i. Auto Debit (Through ECS Debit) Facility: It is available in RBIs all ECS locations (current
and future) and covers all banks participating in the respective ECS clearing locations.
ii. Auto Debit (Through Direct Debit) Facility: It is available with certain selected banks
with which the AMC has made arrangements. At present, AMC has a tie-up with 4
Banks i.e. ICICI Bank, IDBI Bank, Axis Bank and Standard Chartered Bank.

The Investors may contact the nearest ISC for current list of Banks accepting Direct Debit
mandates or for the list of cities where ECS facility is available. The list of cities/banks for
Auto Debit (through ECS/Direct Debit) may be modified/updated/changed/ removed
at any time in future, entirely at the discretion of JM Financial Asset Management Ltd
without assigning any reason. In case of removal of any city/bank from the current list,
the Auto SIP instructions for investors in such locations/banks will stand automatically
discontinued. JM Financial Asset Management Ltd., its Registrars and other service
providers will not be responsible, if the transaction is delayed or not effected or the
investors bank account is debited in advance or after the specific SIP date due to
various cycles of ECS/Clearing because of any reason.

2. A separate set of complete application form (including separate KYC/PAN/Cheque


etc) with required documents is required to be submitted for each SIP date (except
for Combo SIP)/Scheme/Plan/Option/Sub-Option . While the choice of multiple dates
through single Form is not permitted, the investor is free to choose all the six SIP dates
through single form . Any single application if received with multiple choices will be
summarily rejected and the amount of initial investment refunded without any interest,
if the amount of the same is less than the minimum investment limit fixed for particular
Scheme/Plan/Option/sub-option. In case, the amount invested is equivalent or more
than the amount required for meeting the minimum investment criteria, through 1st
installment, the same would be construed as a normal investment in the scheme and
shall be redeemed only on the basis of the redemption request made by the investor.
3. A Minimum of 30 days time is required for the next installment of SIP through
postdated cheques/Auto Debit (ECS/Direct Debit/ Standing Instructions) to take
place after the initial application for each set of separate SIP date (if opted for multiple
dates other than All SIP dates through single form).
4. Under Regular SIP, the first investment has to be made through physical cheque/DD
payable locally at the place of submission of the application. The first cheque/DD has
to be of any valid date and not a post dated one on the date of submission. However,
in case of remaining post-dated SIP cheques, from 2nd installment onwards, the
cheques must contain the opted SIP dates for the entire remaining period out of the
permissible SIP dates i.e. 1st, 5th, 10th, 15th, 20th or 25th of a month. Similarly, in case
of SIP through Auto Debit (Direct Debit/ECS/Standing Instructions), the investor should
choose any of the above mentioned six SIP dates. Likewise, the frequency of SIP (i.e.
Monthly/Quarterly) needs to be specified clearly, failing which Monthly frequency will
be taken as the default frequency.
5. The second SIP installment (except in case of Combo SIP ) of the same opted SIP due
date should not fall in the same calendar month.
6. In case, any particular SIP due date falls on a non-business day or falls during a book
closure period, the immediate next business day will be considered for the purpose
of NAV application accordingly irrespective of the date of debit into investors bank
account.

iii. Auto Debit (Through Standing Instructions) Facility For HDFC Bank Account Holders:

7. The applicable NAV for first investment through SIP under Liquid Funds shall be the
closing NAV of the day immediately preceding the day when the application is timestamped upto 2.00 p.m. on a business day and the funds are sighted into the schemes
bank account upto the cut-off time ( i.e. 2 p.m. ). In case of subsequent SIP installments,
the applications will be deemed to have been received before the cut-off time for
the purpose of SEBIs requirement on cut-off time. However, NAV for subsequent SIP
installments under Liquid Funds would be based on the time of receipt of funds into
schemes bank account before the cut-off time as per SEBI requirements.

In case of SIP under debt schemes in respect of purchase of units for Rs.. 2 lacs or more,
the cut off time of 3.00 pm will applicable for the purpose of time-stamping/ deemed
time-stamping and receipt of funds into schemes bank account.

For SIP installments in other than Liquid fund and installments for Rs. . 2 lacs or more
per installment in case of debt schemes, the application shall be considered to have
been received on the opted due date before the cut off time of the respective scheme
for the purpose of application of NAV.

This facility is available for those investors who maintain their Bank Account with any
branch of HDFC Bank in India. Such investors are required to fill up a separate Standing
Instructions Form meant for HDFC Bank Account holders only.

b. Post Dated Cheques:


An investor can subscribe to SIP facility in other than ECS locations/Direct Debit with
above mentioned Banks/ Standing Instructions facility of HDFC Bank by depositing
Post-dated cheques for the opted period if his bank participates in the local clearing
of the locations on which the cheques are drawn in any part of India where AMC has
made arrangements. However, the first cheque/demand draft should be drawn &
payable at the place where the application is being accepted. Presently this facility
is available in more than 400 locations across India in addition to locations covered
through ECS facility.
In the event of any merger/ acquisition/ closure of Banks, the investor will be required
to replace the remaining post dated cheques with the cheques drawn on any other
existing Bank.

The AMC shall accept only CTS 2010 cheques.


Daily (Chhotta) STP
In order to enable the investors to avail of the benefit of the daily volatility in the stock
markets, a Daily STP (Chhotta STP) facility is available to investors. An investor may opt
for Daily STP of Rs. 1 00/- or in multiples of any amount in full rupee terms, on every
Business Day against his other live investment made in lump sum or through getting
inflows through SIP.
Other terms and conditions with respect to SIP transactions:
Investors may choose any one of the following six SIP dates: 1st, 5th, 10th, 15th, 20th or
25th of the month subject to other Terms & Conditions.
Investor is required to make separate application for different opted dates except in case
of choosing All the six SIP due dates in one go or in case of Combo SIP.
1. The list of cities/banks for Auto Debit (through ECS/Direct Debit/Standing Instruction)
as mentioned above may be modified/updated/ changed/removed at any time
in future, entirely at the discretion of JM Financial Mutual Fund without assigning
any reason. Appropriate prior notice will be provided to the investors in case of any
such deletion in the list of cities/ banks. In case of removal of any city/bank from the
current list, the Auto SIP instructions for investors in such locations/ banks will stand
automatically discontinued. The AMC, its Registrars and other service providers will
not be responsible, if the transaction is delayed or not effected or the investors bank
account is debited in advance or after the specific SIP date due to various cycles of
ECS/Clearing, due to any reason.

8. The Investment cum SIP Enrolment Form complete in all respects may be submitted
at any of the ISCs (Investor Service Centers) of JM Financial Mutual Fund or Karvy
Computershare Pvt. Ltd. In case of SIP through Auto Debit (i.e. through Direct Debit
in selected banks or through ECS in selected cities or through Standing Instructions
for the HDFC Bank account holders), an additional form known as the SIP Auto Debit
Registration cum Mandate Form (through ECS/Direct Debit) and Standing Instruction
form in case of HDFC is also required to be submitted at the time of opting for SIP.
9. To subscribe to investment through SIP, an Investor has to submit the following
documents:
i. Scheme Application cum SIP Registration Form
ii. Auto Debit (through ECS/Direct Debit) Registration cum Mandate Form OR
iii. Auto Debit (through Standing Instructions) Mandate by HDFC Bank Account Holders
iv. Post-dated cheques for remaining period, drawn on any city in India in case of NonAuto Debit SIP
v. Copy of KYC acknowledgement issued by KRA, irrespective of amount of investment /
SIP instalment. For further details please refer the block in KIM on Prevention of Money
Laundering and KYC.
vi. Copy of PAN (exempted for micro SIP investors)
vii. A photo copy of the cheque/cancelled cheque from the same account where future
installments are to be debited if opted for SIP through Auto Debit (through ECS under
Regular & Special SIP) for MICR/IFSC code verification.
viii. Locally Payable Cheque/DD for Initial Investment cum 1st SIP Installment Amount
(NOT REQUIRED FOR SPECIAL SIP CASES) subject to the minimum amount/number
of installment as per above mentioned table for Regular SIP.
The investor should write the SIP Form/Folio number / the first applicants name on the
reverse of the cheque/s accompanying the SIP Form. No need to submit any payment
instrument towards initial investment/first installment in case of Special SIP
MICRO SYSTEMATIC INVESTMENT PLANS (MICRO SIPS)
(i) According to SEBIs letter dated June 19, 2009 to AMFI, investment in Micro Systematic

Investment Plans (Micro SIPs) up to Rs.50000/- per year per investor shall be exempted
from the requirement of PAN subject to other operational guidelines.
(ii) Any investment through Systematic Investment Plans (SIPs) by investors where
aggregate of installments in a rolling 12 months period or in a financial year i.e April
to March, which does not exceed Rs 50,000/- will be treated as Micro SIP for above
purpose. Micro SIP will be subject to common KYC process through KRA (e.g. M/s CVL
etc). This exemption will be applicable ONLY to investments by individuals (including
NRIs but not PIOs), Minors and Sole proprietary firms. HUFs and other categories will
not be eligible for Micro SIPs. The exemption is applicable to joint holders also.

Fund.
8.

Returned / Dis-honoured cheques/ECS/Direct Credit failures will not be presented


again for realization for reasons attributable to the investor/s.

9.

The investor/s agree/s to abide by the terms and conditions of ECS facility of Reserve
Bank of India (RBI) in case of SIP through ECS.

10. Please refer to para on Third Party Payment and Transaction charges elsewhere in
this Key Information Memorandum
Termination of SIP

(iii) In case of first Micro SIP Installment is processed (as the cheque may be banked), and
the application is found to be defective, the Micro SIP registration will cease for future
installments. No refund to be made for the units already allotted. However, redemptions
will be allowed based on the submission of normal prescribed Redemption Transaction
Slip.

In the event of not meeting any one or more of the above mentioned criteria, the SIP will
stand terminated and the investor will be required to make a fresh SIP application if he is
desirous of availing this facility in future also. The fresh application will be subject to the
current terms and conditions of the respective scheme/plan/option.

(iv) The Minimum Investment criteria and the minimum remaining balance criteria will
not be applicable in for Micro SIP investors.

i. For Electronic Clearing Services (ECS) cases :

(v) RTA back-office will reject a Micro SIP application where it is found that the registration
of the application will result in the aggregate of Micro SIP installments in a financial
year exceeding Rs 50,000 or where there are deficiencies in supporting documents.
(vi) Rejected application will be sent back to the investor with a deficiency memo.
Valid SIP application
An investor wishing to avail of the Systematic Investment Plan will have to mandatorily
abide by the following conditions in order to be treated as a valid SIP.
1.

Initial Investment Amount may not be equal to subsequent SIP Installments (Excluding
Special SIP), provided the Minimum Investment criteria of the scheme/plan is met
through the Initial Investment itself. However, all subsequent SIP Installments
must be of the same Amount. The load structure & lock-in conditions for the Initial
Investment & subsequent SIP will be as per the rates/terms applicable on the date of
Initial Investment i.e the Registration Date in case of Regular SIP and Ist installment
in case of Special SIP

2.

In the event of any of the installment amount being different, the AMC will treat
all SIP installments as normal investments and these will be subject to normal load
and other provision as applicable on the respective dates of investments. In order to
treat such installments as normal investments, the AMC reserves the right to revert
and reprocess all previous SIP installments besides discontinuation of SIP for future
installments or alternatively the AMC may recover the exemptions/benefits directly
from investor or by redeeming the equivalent units from the respective folio.

3.

In addition, the AMC will also charge exit load as applicable on the normal investment
based on the dates of respective SIP installments. In the event of non-fulfillment
of minimum subscription criteria due to non-fulfillment of the other conditions or
discontinuation of the SIP on the request by the investor, the AMC reserves the right
to redeem/refund with current valuation on the date of review by the AMC.
Investor is required to ensure that five consecutive SIP installments should not fail due
to the reasons attributable to him or his banker. However, in case of any rejection by
local clearing house/RBI citing reasons like Account closed or nonexistent account
or any such other similar reasons, the SIP for future period will be treated as cancelled/
discontinued after first such rejection itself, at the discretion of the AMC.

4.

In the event of non-receipt of funds for the first investment/Ist SIP installment itself
due to dishonour of the cheque, the SIP will automatically be treated as discontinued
ab initio and amount for subsequent installment will be refunded, if it is not possible
to convert the Regular SIP to Special SIP as per the provisions of the Special SIP.

5.

In order to be treated as a valid SIP application, minimum investment amount criteria


as per the Scheme Information Document of the respective scheme e.g Rs. 5,000/should be received by the AMC as per details mentioned in the above table during
the opted period.

6.

The Clause on Minimum Investment Criteria as specified in the Scheme Information


Document of the respective scheme/plan/option/sub-options will not be applicable
for investments made through the first/single installment of Systematic Investment
/Transfer Plan . For example, the minimum investment amount for investment in JM
Basic Fund is Rs.5,000/-. However, in case of investment through SIP/STP (Systematic
Investment/Transfer Plan), an investor can invest with minimum installment amount
of Rs.500/- or more per month or Rs. 3000/- or more per quarter so as to meet the
Minimum Investment Amount over the opted period.

In case of a Regular SIP, the AMC will retain the initial investment made towards the
1st SIP installment as normal investment if the same meets the minimum investment
criteria of the scheme concerned and will not refund even if it does not fulfill any of the
criteria stipulated for a valid SIP. However, the investor may redeem/ switch-out if he
so wishes, by submitting redemption/switch-out requests as per normal procedure.

In case, any of SIP/STP/SWP due dates fall on a Non-Business day, the NAV of the next
Business day will be applicable.

7.

The cheque/s should be drawn in favour of the scheme/plan chosen (e.g. JM Equity
Fund) and crossed A/C Payee Only and payable locally and drawn on any bank,
which is situated at and is a member of the Bankers Clearing House located at the
place where the SIP application is submitted. In case of outstation cheques, if accepted
by the AMC, the AMC shall credit the unit holders account with the number of units
at the applicable sale price on the day when clear funds are received by the Mutual

Discontinuation of Systematic Investment Plan (SIP):


For discontinuation of SIP through ECS debit, the cancellation/discontinuation request
signed by the unitholder/s should reach the AMC/Registrar at least 15 Calendar days prior
to the due date for next SIP installment, failing which the discontinuation request will be
considered from the subsequent SIP installment onwards.
ii. For Direct Debit cases / Standing Instruction of HDFC Bank cases :
For discontinuation of SIP through Direct debit/Standing Instructions of HDFC Bank, the
cancellation/discontinuation request signed by the unitholder/s should reach the AMC
/ Registrar at least 30 Calendar days prior to the due date of the next installment, failing
which the same will be considered from the subsequent SIP installment onwards. In
view of the time required by respective banks to complete the process of cancellation,
the units towards such SIP installments will continue to be allotted for the subsequent
two installments after the receipt of cancellation/ discontinuation request or until the
respective banks confirm having noted the cancellation of debit instructions, whichever
is earlier. Thereafter, the SIP will be automatically discontinued for allotment of units for
future instalments. Any credit received thereafter from the Bank towards the subsequent
installments will be kept in abeyance for refund to unitholders at the earliest, without any
interest/ accruals/benefits or without allotting the units .
iii. For Post Dated Cheques:
In case of physical post-dated cheques, the minimum notice period for cancellation /
discontinuation is 30 calendar days. However, the units will continue to be allotted till the
happening of earlier of the following:
a. till the cancellation is recorded and confirmed by the co-ordinating bank of the AMC
and the balance unpaid post-dated cheques are retrieved from the Bank, for return
to the unitholder; or
b. till 2 SIP installments, after the receipt of request for discontinuation/cancellation of
future SIP Installments.
Any amount received after the above will be refunded to the investor without any interest/
accruals/benefits or without allotting the units.
In the event of non fulfillment of the criteria specified for a valid SIP application, the AMC
reserves the right to revert all the previous allotments and re-allot the units afresh with
applicable loads (in case of applications for SIP transactions routed through a broker/
agent/distributor) as applicable on the respective due dates by treating them as normal
investments. In addition, the AMC may also recover the amount of load waived/exemptions
given for all allotments directly from the investor or by debit to his folios maintained with
JM Financial Mutual Fund. The revertal and reprocessing of units in the above case would
be subject to the investor meeting the minimum subscription amount (after deduction of
permissible DD charges). In case, an investor is unable to meet the minimum subscription
criteria due to non fulfillment of the other conditions or discontinuation of the SIP on
request by the investor, the AMC reserves the right to redeem/refund with current valuation
on the date of review by the AMC.
Corporate SIP : Systematic Investment Plan for Corporate Employees
Corporate employees may opt for the Systematic Investment Plan available to them.
In this case, the concerned employer is required to forward to the AMC the Scheme
application cum SIP registration mandate form of the corporate employee who desires
to invest in the Scheme. The application amount for the corporate employees would also
be forwarded by the employer on specific request from the concerned employee. The
concerned employee has to authorize the employer to deduct the application amount
from his salary and remit the same to the Fund at regular intervals to ensure receipt of
funds by the AMC on or before the next due date. Other terms and condition of respective
SIP and Schemes will be applicable.
Facility of re-registration under Systematic Investment Plan (SIP)
In terms of SEBI circular No. SEBI/IMD/CIR no. 4/ 168230/09 dated June 30, 2009, no
entry load is to be charged for investments into the schemes. Pursuant to the above, all
existing SIP investors of JM Financial Mutual Fund (the Fund) may if desired request for
re-registering their existing SIP for the remaining installments, without any entry load, by
making a request on a prescribed form containing the requisite undertaking. However,
the other existing terms and conditions (including broker code, exit load applicability for
respective installments etc. as prevailing at the time of original registration of the SIP, shall
remain unchanged for the re-registered SIP.
Conversion of Regular SIP to Special SIP: The AMC at its discretion may treat the

investment made under Regular SIP (ECS/Direct Debit/Standing Instructions) as having


been made under Special SIP if the Ist payment instrument bounces back as unpaid whereas
the payment for 2nd installment is received in the meantime. However, in such event , all
the provisions of Special SIP will be applicable including load structure, as applicable on
the date of Ist installment through Special SIP (i.e. 2nd installment through Regular SIP).
Accordingly, the AMC will re-register the period of subscription through Special SIP suitably.
Renewal/Continuation of existing SIP : In case, the existing SIP investor is willing to
continue/extend his/her/their existing SIP in the same plan of the same for further period
of 6 or more months, he/she/they may do by :
1.

Auto Debit (ECS/Direct Debit) : Submitting a fresh Auto Debit (ECS/Direct Debit ) Form
before the expiry of last SIP due date to avoid break in SIP period and render it to be
invalid (fresh Common Application Form is not required)

2.

Standing Instructions : In case of HDFC Bank Account Holder submitting a fresh


Standing Instructions Form with Common Application Form and cheque towards
first installment before the expiry of the last due date to avoid break in SIP period
and render it to be invalid

3.

Post Dated Cheque : Submitting the fresh set of PDCs with fresh signed Common
Application Form by filling fresh SIP details and change if any.

For Renewal/Continuation of SIP, the terms and conditions with regard to Lock- in period,
Load etc. as on the 1st Installment, after the expiry of the last installment of the Existing
SIP, will be applicable.

higher) applicable for the respective scheme/plan/option on the 1st opted STP/SWP date.
However, the investor is not required to maintain the same balance after processing the
1st STP/SWP installment. The last installment may be equivalent to or less than the opted
installment amount.
Systematic Transfer Plan (STP) - The minimum amount for transfer and available
dates for STP are as under :
Frequency

Daily @@

Amount per
installment$

Minimum 15
Calender days

If 50
installments
within 90 days
of start of Ist
STP could not
be effected

Weekly

Rs. 1000/-

1st , 8th, 15th,


22nd (after 22nd
the next date will
automatically be
the 1st of next
month)

Minimum 15
calendar days

If five
instalments
out of the first
six instalments
could not be
effected. *

Fortnightly

Rs. 1000/-

1st and 15th

As above

As above

Monthly

Rs. 1000/-

1st, 5th, 10th,


15th, 20th and
25th

As above

As above

Quarterly

Rs. 3000/-

1st Business
Day of the
next month
subject to the
minimum gap
of 15 calender
days from the
date of receipt of
STP request and
subsequently
after every
quarter from the
start month.

As above

If first two
installments
are not
effected *

(Chhotta STP /
Combo SIP

Combo SIP/Chhota STP

Out of Normal Investment: An investor against his existing or fresh lump sum
investment may opt for this facility through daily STP where a transfer of Rs. 1 00 or
any amount thereafter (in full rupee terms) on every Business Day will be effected by
the AMC/its Registrar automatically during the opted period or till the out-scheme/
plan/option is able to transfer funds , whichever is earlier made any of the Open-ended
Schemes/ Plans/ Options

b.

Out of SIP Investment : An investor may choose to avail of this facility against his
existing/fresh SIP Account in any of the open-ended schemes/plan/option where
transfer of Rs. 100/- or in multiples of any amount (in full rupee terms) through daily
STP would be effected per Business Day. Through this mechanism of regular inflow
& outflow, the investor may invest higher amount through SIP on any of the six SIP
dates and avail the benefit of daily volatility of market through daily STP with smaller
amounts for better risk-adjusted return.

The Investor is required to meet the minimum Investment amount of the Plan within 90
days of the Ist Chhotta STP/ Ist Combo SIP due date.
In case of non fulfillment of Minimum Investment Criteria of the Scheme/Plan under Daily
STP & Combo SIP facility within 90 days of the Ist Chhotta STP/Ist Combo SIP date, the AMC
may, at its discretion redeem the allotted units at current NAV and remit the proceeds any
time after the completion of specified period of 90 days, if not already redeemed by the
investor. In an out-going scheme folio, the Investor can also make investment through SIP
or through Additional investment to meet the minimum Investment criteria of the Scheme/
Plan concerned in order to avoid automatic redemption by the AMC.
Investors may choose any one of the six dates i.e.: 1st, 5th, 10th, 15th, 20th or 25th of
the month for their STP and SWP transactions. In case of Chhota STP, the choice of daily
option is automatic.
Under SWP, the Unit holders shall have an option to predetermine the withdrawal from
the scheme. SWP facility is available on 1st, 5th, 10th, 15th, 20th and 25th of the month
under monthly and 1st Business Day of the next month for quarterly SWP, subject to the
minimum gap of 15 calendar days to start SWP . Subsequent quarterly SWP will fall due
after completion of 3 months from the start date.
Under the SWP facility, investors may choose between
Fixed Amount Withdrawal (FAW):
Under this option the investor will have the facility to automate withdrawal of a fixed
amount from the scheme at Monthly / Quarterly intervals on the opted due date.
Capital Appreciation Withdrawal (CAW):
Under Capital Appreciation Withdrawal facility, the investors will have the option to indicate
automatic withdrawal of capital appreciation at varying time intervals over previous period,
on monthly or quarterly basis.
Example: Mr. X has invested Rs. 10,000 in the Scheme and instructs the AMC for CAW
withdrawal on monthly basis. If his investment turns to be Rs. 10,100 at the end of first
month the appreciated Rs. 100 would be automatically withdrawn from the Scheme.
In order to start the STP/SWP, the investor must have a minimum investment of Rs.
5,000/- or above or as per the minimum investment subscription amount (whichever is

Revertal and
Reprocess
with load or
recovery of load
if following
conditions are
not met@

60

These facilities have been explained in detail below.

a.

Minimum
period required
to start 1st STP/
extend the STP
after receiving
the request

Any day subject


to the time
required to
complete the
registration
process

Systematic Transfer Plan (STP) / Systematic Withdrawal Plan (SWP)

Under Combo SIP investors may Daily Transfer Rs. 1 00/- or in multiples of any amount in
full rupee terms to an Opted Scheme, per Business Day, as under.

Minimum
mandatory
installments
(equal amount)

Rs. 100

The AMC shall accept only CTS 2010 cheques.

STP provides for transfer of specified amount from one scheme/plan/option in which
the original investment is made to any other scheme/plan/option of JM Financial Mutual
Fund, at the end of specified periodic interval viz., either daily, weekly, fortnightly, monthly
or quarterly.

Starting date
during any
month

$ Further, in multiples of Re 1/- after the above minimum limit fixed for each STP installment
as per the frequency opted or as per the features of respective schemes eg. under JM Tax
Gain Fund , the minimum investment is Rs. 500/- and further in multiples of Rs. 500/- each.
@@ Not permitted under JM Tax Gain Fund being subject to ELSS guidelines.
@ In case 5 out of the first 6 installments in monthly / weekly / fortnightly and first two in
case of quarterly option are effected, the STPs will be treated as valid and there will be
no revertal and reprocess with recovery of load.
* Or In the event of failure of two consecutive STP installments, the STP request will stand
terminated and the investor will have to make a fresh application for availing of this facility
subject to the current term & conditions applicable for fresh STP cases. This condition
will, however, not be applicable in case of CAW where the condition of minimum STP
instalments could not be met due to the capital appreciation amount being less than Rs.
100 in case of monthly option and Rs. 300 in case of quarterly option.
An investor will have to opt for minimum 6 installments or in multiples of 6 installments i.e
6,12,18,24,30 installments respectively for his STP requests in case of weekly/ fortnightly/
monthly plan and for minimum of 2 installments or in multiples of 2 installments in case
he opts for the quarterly plan
It is clarified that these 6 installments pertain to a given application for a specified opted
date, for a specific option/ sub-option Separate application is required for each option/
sub-option for respective due date(s).
In case, it is not possible for the AMC/Registrar to start the STP/SWP from the opted
start date due to the insufficiency of time given by the investor , the AMC/Registrar will
automatically process the first STP/SWP on the opted date from the next cycle/month
after the opted starting cycle/month e.g. In case investor applies for STP/SWP on 1 8th
Jan 2012 for effecting Ist STP/SWP from 1 st February, 2012, AMC/Registrar may process
the same from 1 st of March, 2012 in case of monthly option. In such a case, the ending
period will be extended automatically by another month.
Minimum amount for withdrawal under SWP is fixed as under :
a. Fixed Amount Withdrawal (FAW) : Rs.1,000/- per month or Rs.3,000/- per quarter and
further in multiples of Re.1/- thereafter.
b. Capital Appreciation Withdrawal(CAW) Entire Capital Appreciation over the previous
due date to current due date subject to a minimum of Rs. 100 under monthly option
and Rs. 300/- under quarterly option

In case, the opted STP/SWP day falls on a non-business day, the next business day shall be
deemed to be the transaction day for that month or quarter as the case may be.
Each installment under STP/SWP cannot exceed the live investment amount on the
registration date of STP/SWP divided by the number of installment chosen subject to the
fulfillment of minimum STP/SWP criteria for respective frequency. In case of multiple STP/
SWP dates, the total number of installments for all opted dates will be taken into account
while fixing up the maximum installment amount.
Investments through systematic routes in case of Direct Plan:
(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) etc.
registered prior to the Effective Date without any distributor code under the Normal
Plan, installments falling on or after the Effective Date will automatically be processed
under the Direct Plan only.
(b) Investors who had registered for SIP facility prior to the Effective Date with distributor
code shall continue under the Normal Plan. However if the investor wishes that their
future installments be invested into the Direct Plan, he shall make a written request to
the Mutual Fund in this behalf. The Mutual Fund will take at least 15 Business days to
process such requests. Intervening installments will continue in the Normal Plan.
In case of (a) and (b) above, the terms and conditions of the existing registered
enrolment such as tenure , amount of the SIP etc. shall continue to apply.
(c) In case of Systematic Transfer Facilities which were registered with a Distributor Code
under the Normal Plan prior to the Effective Date, the future installments under the
said Facilities shall continue as under the Normal Plan.
In case such investors wish to invest under the Direct Plan through these facilities, they
would have to cancel their existing enrolments and register afresh for such facilities.
Discontinuation/Termination of STP/SWP
For discontinuation of STP/ SWP, the unitholder is required to intimate the AMC/ Registrar
at least 15 Calendar Days prior to the next installment for the respective due date. On such
request, STP/ SWP will be terminated and the transfer/ withdrawal instructions given by
the investor will be treated as cancelled.
Further, in case of non-fulfilment of any other terms and conditions, the STP/SWP will be
treated as cancelled/discontinued/terminated as per the discretion of the AMC.
In case of specific request received from investors, the Fund/Registrar will provide the
account statement to the investors within 5 business days from the receipt of such request
without any charges. Further, soft copy of the account statement shall be mailed to the
investors under SIP/STP/SWP to their e-mail address on a monthly basis, if email id is
furnished in the folio concerned.
An investor cannot simultaneously participate in an SIP and SWP in the same scheme. This
facility is also not available for investments under lock-in or encumbrances. All withdrawals
under SWP including FAW & CAW options shall be considered as redemption with no further
specific request or documentation requiring to be submitted by the unit holders. On the
respective date of processing the SWP request, a revised account statement showing the
amount withdrawn under SWP together with balance units (post accounting the SWP) in
their account shall be mailed to the unit holders.
All operational instructions of SWP including FAW & CAW options shall be in Rupees and
not in Units.
In case, the outstanding balance in out-scheme/plan/option falls below the prescribed
minimum balance (based on applicable NAV) due to redemptions or SWP, the AMC reserves
the right to discontinue the SWP facility and / or close an investors account if the investor
fails to invest sufficient funds to bring the value of the account to the prescribed minimum
(based on applicable NAV) after a written intimation in this regard is sent to the Unit holder.
In case of SIP/ STP transactions, the minimum number of mandatory installments pertain
to a given application for a specified opted date/ specific option/ specific sub-option.
Separate application is required for each option/ sub-option for respective due date(s).
In the event of not meeting any one or more of the above mentioned criteria, the STP/
SWP will stand terminated and the investor will be required to make a fresh application
if he is desirous of availing this facility in future also. The fresh application will be subject
to the current terms and conditions of the respective scheme/plan/option on the date
of fresh registration.
All applicants are deemed to have accepted the terms and conditions upon submitting
the valid application form with other requisites for investment under Systematic Plans.

other Scheme and accordingly, to be effective, the switch must comply with the redemption
rules of the Scheme and the issue rules of the other scheme (for e.g. as to the minimum
number of Units that may be redeemed or issued, applicable load, etc). The price at which
the Units will be switched out of the Scheme/Plan/Option will be based on the Repurchase
Price, and the proceeds will be invested in the opted Plan/ Option of the target Scheme at
the prevailing terms and sale price for units in that scheme/plan/option. The switch - out
from one scheme to another scheme (i.e. requiring change in portfolio) will be effective
only after the switch - out scheme has received the funds in the in-scheme. Accordingly,
the applicability of NAV will be dependant on the SEBI guidelines.
Investors will not have to bear exit load for inter and intra equity switches except in case
of (i) switches by SIP/STP investors within 24 months (for cases registered from 4.1.2008
up to 2.10.2008) and with in 12 months (for cases registered upto 3.1.2008) of respective
SIP/STP installments (ii) switches by STP investors (for cases registered from 3.10.2008)
within 24 months of respective STP installments (iii) switches by SIP investors (for cases
registered from 3.10.2008) within 12 months of respective SIP installments (iv) switches
to/from JM Arbitrage Advantage Fund to any equity schemes.
Subject to necessary approvals (if any) from the Regulatory authorities and any other
approval as applicable, tax deduction at source, if any, will be effected at the appropriate
rate in case of a switching by NRIs/FIIs and the balance amount would be utilized to
exchange units to the other Scheme.
All cheques and bank drafts accompanying the application form should contain the
application form number on its reverse.
Identification of Beneficial Ownership:
In terms of SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating
the Financing of Terrorism (CFT) dated December 31, 2010 and guidelines issued by
SEBI from time to time, all the registered intermediaries are required to undertake Client
Due Diligence (CDD) measures wherein intermediaries are required to obtain sufficient
information from their clients in order to identify and verify the identity of the persons
who beneficially own or control the securities account.
In terms of the said SEBI Master Circular, beneficial owner is the natural person or persons
who ultimately own, control or influence a client and/or persons on whose behalf a
transaction is being conducted. It also incorporates those persons who exercise ultimate
effective control over a legal person or arrangement. Also, the Prevention of Money
Laundering Rules, 2005 (PMLR 2005) requires each intermediary to identify the beneficial
owner and take all reasonable steps to verify his/her identity.
In compliance with the aforesaid regulatory requirements, the following CDD shall be
applicable to all the investors of the schemes of JM Financial Mutual Fund (the Mutual
Fund):
1. Applicability:
a. Details of beneficial ownership will have to be provided by all the categories of
investors except the following:

1. Individuals

2. Company listed on a stock exchange

3. Majority owned subsidiary of the aforesaid company.

b. Information about the Beneficial Owner shall be provided by the investors to


JM Financial Asset Management Limited (the AMC)/its Registrar i.e. M/s. Karvy
Computershare Private Limited.
c. Proof of Identity of the Beneficial Owner such as Name/s, Address & PAN/Passport
together with self attested copy* are required to be submitted to the AMC/its Registrar.

(*Original to be shown for verification and immediate return)

d. In case of any change in the beneficial ownership, the investor is required to


immediately intimate the AMC/its Registrar/KRA, as may be applicable, about such
changes.
2. Identification Process:

As provided by SEBI in its Circular No. CIR/MIRSD/2/2013 dated January 24, 2013, the
following process shall be adopted by the Mutual Fund:

a) For investors other than Individuals or Trusts:


1.

For the aforesaid clause, Controlling ownership interest means ownership of/
entitlement of:

Switching Options (In case of JM Tax Gain Fund this option will be available only after
completion of lock-in period)

a. More than 25% of shares or capital or profits of the juridical person, where the
juridical person is a company;

Unitholders under the Scheme have the option to switch part or all of their unit holdings
in the Scheme to another Scheme established by the Fund, or within the Scheme from one
Plan to another, which is available for investment at that time. This option will be useful
to Unitholders who wish to alter the allocation of their investment among the Scheme/
Plan(s)/Options of the Fund in order to meet their changed investment needs.

b. More than 15% of the capital or profits of the juridical person, where the juridical
person is a partnership; or

c. More than 15% of the property or capital or profits of the juridical person, where
the juridical person is an unincorporated association or body of individuals.

2. In case of doubt under clause (1) above as to whether the person with the
controlling ownership interest is the beneficial owner or where no natural person
exerts control through ownership interests; the identity of the natural person
exercising control over the juridical person through voting rights, agreement,
arrangements or in any other manner shall be the beneficial owner.

The AMC reserves the right to change the terms of this facility from time to time.
Default Option for all SIP/STP-out/SWP
In case, the Investor fails to mention the start date or end date under the SIP/STP-out/SWP,
the first of the subsequent month , after completing 30 days from the date of registration,
will be considered as the default SIP/STP-out/SWP date and the same would be treated to
have been opted on perpetual basis.

The switch will be effected by way of a redemption of Units from the Scheme/Plan/Option
and a reinvestment of the redemption proceeds in the opted Scheme/Plan/Option of the

In the case of Company, Partnership or unincorporated association/body of


individuals, the beneficial owners are the natural person/s, who, whether acting
alone or together, or through one or more judicial person, exercises control
through ownership or who ultimately has a controlling ownership interest.

3. Where no natural person is identified under clauses (1) and (2) above, the natural
person who holds the position of senior managing official shall be considered
as the beneficial owner.

b) For investor which is a Trust:


In case of a Trust, the intermediary shall identify the beneficial owners of the investor
and take reasonable measures to verify the identity of such persons, through the
identity of the Settlor of the trust, the trustee, the protector, the beneficiaries with
15% or more interest in the trust and any other natural person exercising ultimate
effective control over the trust through a chain of control or ownership.

c) For Foreign investors:


The intermediaries dealing with foreign investors viz., Foreign Institutional Investors,
Sub Accounts and Qualified Foreign Investors shall adopt the Know Your Client (KYC)
requirements specified by SEBI in its SEBI Circular No. CIR/MIRSD/11/2012 dated
September 5, 2012, which are as follows:
Relevant requirements on KYC Form
as per SEBI Circulars dated August 22,
2011 and October 5, 2011

Clarifications for Foreign Investors viz.


FIIs, Sub Accounts and QFIs

Copy of latest share holding pattern


including list of all those holding
control, either directly or indirectly,
in the company in terms of SEBI
Takeover Regulations, duly certified
by the Company Secretary/Whole
Time Director/MD (to be submitted
every year). POI and POA of individual
promoters holding control - either
directly or indirectly.

List of beneficial owners with


shareholding or beneficial interest in
the client equal to or above 25% to be
obtained. If Global Custodian /Local
Custodian provides an undertaking to
submit these details, then intermediary
may take such undertaking only. Any
change in the list to be obtained based
on risk profile of the investor.

Name, residential address, photograph,


POI and POA of Partners/Trustees, Whole
Time Directors/two directors in charge of
day to day operations and individual promoters holding control - either directly or
indirectly.

A. Not required if Global Custodian /


Local Custodian gives an undertaking to
provide the following documents as and
when requested for by intermediary:
1) A resolution from the Board of
Directors and power of attorney granted
to its managers, officers or employees to
transact on its behalf; and
2) An officially valid document in respect
of managers, officers or employees
holding an attorney to transact on its
behalf.
B. If Global Custodian/Local Custodian
does not provide such undertaking as
stated in A above, intermediary shall take
required details from Foreign Investors.

Disclosure of Bank Mandate


All cheques and bank drafts accompanying the application form should contain the
application form number on its reverse. As per the directive issued by SEBI vide their letter
IIMARP/MF/CIR/07/826/98 dated April 15, 1998, and SEBI/IMD/CIR No. 6/4213/04 dated
March 1, 2004 it is mandatory for applicants to mention their bank account numbers
in their applications for purchase or redemption of Units. This is to prevent fraudulent
encashment of dividend/redemption / refund cheques.
The verification procedures for registration of bank mandates will henceforth be applicable
at the time of fresh subscription/new folio creation with the Mutual Fund i.e. in case
the fresh subscription cheque does not belong to the bank mandate mentioned in the
application form, the AMC shall seek the additional documents and follow the procedures
set out in addendum dated October 1, 2013, before registering the bank mandate in the
new folio.

the date when dividend is declared. The Fund does not guarantee or assure declaration or
payment of dividend. Although, the Trustee has the intention to declare dividend under
the dividend options, such declaration of dividend, if any, is subject to the Schemes
performance and the availability of distributable surplus in the Scheme at the time of
declaration of such dividend. Under the Growth option, the earnings will be retained and
reflected in the NAV and not distributed.
On payment of dividend and dividend distribution tax (if and as applicable), the NAV will
stand reduced by the amount of dividend and dividend tax paid.
No dividend under Dividend Plan shall be distributed in cash even for those unitholders
who have opted for payout where such dividend on a single payout is less than Rs. 100/-.
Consequently, such dividend (less than Rs. 100/-) shall be compulsorily re-invested except
in schemes where Dividend Reinvestment option is not available e.g. JM Tax Gain Fund.
Bonus Policy:
i)

Under Bonus Option, the bonus units may be declared at the discretion of the Trustees,
from time to time based on the availability of distributable surplus, on the record date.

ii) Bonus units will be issued by capitalizing net distributable surplus and the amount
standing to the credit of the distributable reserves of the Bonus Option of the Scheme,
as on the said record date.
In terms of SEBI Circular dated March 18, 2008, Bonus units shall not be subject to entry
and exit load.
Investors are advised to consult their tax advisor to understand the tax implications for
subscribing/redeeming in the units of Bonus Option of the aforesaid Schemes.
Annual Bonus Option
Bonus units will be issued by capitalizing net distributable surplus and the amount standing
to the credit of the distributable reserves of the Annual Bonus Option of the Scheme, as
on the said record date.
However, the Schemes do not assure any targeted annual return/income nor any
capitalization ratio.
The actual declaration of Bonus and ratio of Bonus Units and frequency thereof will,
inter-alia, depend on availability of amount to the credit of reserves and /or availability
of distributable surplus, calculated in accordance with SEBI (Mutual Funds) Regulations,
1996 and will be at the sole discretion of Trustees and the decision of Trustees shall be
final in this regard.
Exchange Platforms:
As per the normal practice, if in the sub - option of Dividend payout, the dividend amount
is less than Rs. 100, then the dividend is compulsorily re-invested. Investors are hereby
informed that under this facility, dividend shall not be reinvested but will be paid out to
the respective investors.
Restriction on Acceptance of Third Party Payments
Any application accompanied with third party payment for subscription to units of
Scheme(s) is liable for rejection without any recourse to the applicant or investor.
It is clarified that Third Party Payment would mean a payment is from a bank account other
than that of the beneficiary investor. In case of payments received from a bank account
which is jointly held, the first holder of the mutual fund subscription has to be one of the
joint holders of the bank account, from which such payment is made.
Exceptions to Third Party Payments
Subject to the submission of requisite documentation and declarations, the following
third party payments will be accepted by the AMC / Mutual Fund.

Payment by Parents/Grand-Parents/related persons on behalf of a minor in


consideration of natural love and affection or as gift for a value not exceeding
Rs.50,000/- (each regular purchase or per SIP instalment). However this restriction
will not be applicable for payment made by a guardian whose name is registered in
the records of Mutual Fund in that folio.

Refusal to accept fresh purchases

In case, it is observed that there are consecutive instances of cheque dishonour by the
same unitholder/ investor due to the reasons attributable to such unitholder/ investor,
the AMC reserves the right, not to accept fresh purchase application(s) from such unit
holder/ investor in the future.

Payment by Employer on behalf of employee under Systematic Investment Plans or


lump sum / one-time subscription, through Payroll deductions. Asset management
companies should exercise extra due diligence in terms of ensuring the authenticity
of such arrangements from a fraud prevention and KYC perspective.

Custodian on behalf of an FII or a Client.

DESPATCH OF REPURCHASE OR DIVIDEND PROCEEDS:


The redemption or repurchase proceeds shall be dispatched/remitted to the unit holders
within 10 business days from the date of redemption or repurchase.
The dividend warrants shall be dispatched/remitted to the unit holders within 30 days of
the date of declaration of the dividend.The Asset Management Company shall be liable
to pay interest to the unitholders at such rate as may be specified by SEBI for the period
of delay (presently @ 15% per annum).
DIVIDEND POLICY
DIVIDENDS SHALL BE DECLARED AT THE DISCRETION OF THE TRUSTEE SUBJECT TO
AVAILABILITY OF DISTRIBUTABLE SURPLUS.
Dividends if declared will be paid to the Unit holders appearing in the Register of Unit
holder on the Record Date. In case the Record Date falls on a non Business Day, the
immediately following Business Day shall be the Record Date.
An investor of record for the purpose of dividend is an investor who is a Unitholder as of

Investments made through the exceptional cases mentioned above, are required to
comply with the following.
a) Mandatory KYC Acknowledgement Letter of the Investor as well as of the person
making the payment i.e. the third party should accompany the application form.
b) Declaration from the Investor and the person making the payment i.e. the third
party, giving the details of the bank account from which the payment is made and
the relationship with the beneficiary.
Important Note: The declarations mentioned above should accompany each purchase
application.
In order to enable verification of the source of funds the investors are required to ensure
the following requirements while subscribing to the units of the Schemes of the Mutual
Fund:
a)

At the time of his / her / their purchase, investors to provide the details of his / her /
their pay-in bank account (i.e. account from which a subscription payment is made)

and his / her / their pay-out bank account (i.e. account into which redemption /
dividend proceeds are to be paid).
b) In case, an investor has multiple accounts, the investor to register them with the AMC
in accordance with the procedure set out in para II below.
c)

The investor to submit any one of the following documents to establish that the
payment is made from the bank account of the first unit holder:

i.

Cancelled cheque leaf depicting name of the first unit holder or

ii.

In case, name of the first holder / applicants is not printed on payment cheque,
a cancelled cheque and copy of Bank Pass Book / Bank Statement or

iii. A Certificate, in original, on letter head from the banker certifying that the investor
maintains a bank account with the bank and mentioning the details like bank
account number and branch address.

d) If the subscription is settled with pre-funded instruments such as Pay Order, Demand
Draft, Bankers cheque, etc., investors to provide a Certificate from the Issuing banker
stating the Account holders name and the Account number which has been debited
for issue of the pre-funded instrument. The bank account number mentioned in the
certificate must be the account which is registered with the Fund or the first named
applicant / investor should be one of the holders of the said bank account.

e)

f )

Note: A pre-funded instrument issued by the Bank against Cash shall not be accepted
by the AMC / Mutual Fund for investments of Rs. 50,000/- or more. This also should
be accompanied by a certificate from the banker giving name, address and PAN (if
available) of the person who has requested for the demand draft.
If payment is made by RTGS, NEFT, ECS, bank transfer, etc., investors should submit a
copy of the instruction to the bank stating the account number debited along with
the purchase application. An investor must attach a Certificate, in original, on letter
head from the banker certifying account holders name and account number which
has been debited for issue of the instruments. The bank account number mentioned
in the certificate must be the account which is registered with the Fund or the first
named applicant / investor should be one of the holders of the said bank account.
In case, the payment is made by online transfer of funds, the copy of transfer
confirmation, showing the details of date of payment, debit and credit accounts and
amount of transfer, is attached.

In case, the details and additional documents, where necessary, as mentioned above are
not submitted with each subscription application, the application will be deemed to be
through a Third Party payment and is liable to be rejected without any recourse to the
applicant / investor. In case, the funds are transferred to the mutual fund prior to rejection
of the subscription, additional documents / details with respect to the investor and the
payment may be sought prior to initiating a refund.
SAFE MODE OF WRITING CHEQUE:
To avoid fraud and misuse of payment instruments, investors are advised to make the
payment instrument (cheque, demand draft, pay order, etc) favouring
XYZ Scheme A/c First Investor name or
XYZ Scheme A/c Permanent Account Number or
XYZ Scheme A/c Folio number.
Clarifications pertaining to Third Party Payments:
1) As an exception to the Third Party Payments, JM Financial Asset Management Limited
(The AMC) is open to accept payments made by the employer on behalf of the
employee, provided valid supporting documents are submitted.
2) If subscription to the units in one or more of the schemes of JMF MF is made by the
investor vide Demand Draft (DD), subject to the debit in his/her account, any one of
the following documents submitted will be considered as valid by JMF MF:
a) A Bank Managers Certificate will be considered as proof, provided the details of
Account Holders Name, Bank Account Number and PAN, as per bank records, is
provided.
b) An Acknowledgement from the bank specifying the debit details, bank account
details and name of the investor as an account holder.
c) A copy of the Passbook/Bank Statement for proof of debit transaction for the issue
of DD.
3) If subscription to the units in one or more schemes of JMF MF is made by the investor
vide DD, provided it is issued against cash, then a Bankers Certificate, mentioning the
details of the Issuance of DD along with the Investors Name, Bank Account Number
and PAN as per Bank records, if available, must be submitted. Provided in both the
above cases i.e. Point No. 2 and 3, the Bank Account Number of the investor must be
the same as the bank account mandate registered with JM Financial Mutual Fund or
the bank details mentioned in the application form.
REGISTRATION OF MULTIPLE BANK ACCOUNTS
To mitigate the risk related to simultaneous change of bank mandate and redemption
on multiple occasions, the Mutual Fund has introduced the facility to register Multiple
Bank Accounts. Individuals and HUFs can register up to five (5) bank accounts and non
individuals can register up to ten (10) bank accounts in a folio and is applicable for all
schemes in that folio.
Please contact the nearest Investor Service Centre (ISC) of the Mutual Fund/ the Registrar
of the Mutual Fund viz M/s Karvy Computershare Pvt. Ltd. or visit our website www.

jmfinancialmf.com for the Multiple Bank Accounts Registration Form (Registration Form).
For registration of multiple bank accounts, the investors can submit any one of the following
documents along with Part A of the registration form. In case, a copy of any document
has been submitted, investor should bring the original to the ISC of the Mutual Fund /
the Registrar for verification:
a. Cancelled cheque leaf, or
b. Bank Statement / Pass Book Page with account number, account holders name and
address.
The registered bank accounts mentioned above will be used to identify subscriptions
payments and any one of the registered bank accounts can be used towards redemption
or dividend payments. In case, any of the registered bank accounts is closed / altered,
instructions to delete / alter it should be intimated by using the designated form which can
be downloaded from our website mentioned above. Requests received on a plain paper
are liable to be rejected. The bank accounts will be registered or any subsequent addition
/ change / deletion in the registered bank accounts would be effected within a period
of 10 calendar days, subject to the documents being in order. The process of validation
would include notifying the investor about the request made for registration of new bank
account, through letter, email, sms, phone etc. as may be deemed appropriate. In case a
redemption request is received before the change of bank details have been validated and
registered, the redemption request would be the currently registered (old) bank account.
Registration of a Default Bank Account: Part B of the Registration Form may be used by the
unit holders to specify any one bank account out of the registered multiple bank accounts,
as the Default Bank Account, for the credit of redemption and dividend proceeds. The
Default Bank Account will be used for payments of redemption requests in case no other
registered bank account or a non-registered bank account is specified in the redemption
request for receiving redemption proceeds.
In case, the Default Bank Account is not specified, the Mutual Fund shall treat the following
as default bank accounts.
a.

In case of existing investors, the existing bank mandate, till the investor gives a
separate request to change the same to any of other registered bank accounts.

b.

In case of new investors, the bank account mentioned on the purchase application
form, used for opening the folio, till the investor gives a separate request to change
the same to any of other registered bank account.

Deletion of Registered Bank Accounts: Part C of the Registration Form can be used by the
investors to delete a registered bank account. Investor will not be allowed to delete a default
bank account unless he/she registers another registered account as a default account.
Kindly note that effective November 15, 2010, redemption payments will be sent only to a
bank account that is already registered and validated in the folio at the time of redemption
transaction processing.
Consequent to introduction of Multiple Bank Accounts Facility, the existing facility of
redemption requests accompanied with request for change of bank mandate will not be
processed simultaneously. The two requests will be handled and executed separately for
all existing and new customers, irrespective of customer category.
In case, the unit holder(s) provide a new and unregistered bank mandate with a redemption
request (with or without necessary supporting documents) such bank account will not be
considered for payment of redemption proceeds and redemption proceeds will be sent
to existing registered bank account only.
In case of registration of bank mandates, the verification procedures shall be applicable at
the time of fresh subscription/new folio creation with the Mutual Fund i.e. in case the fresh
subscription cheque does not belong to the bank mandate mentioned in the application
form, the AMC shall seek the additional documents and follow the procedures set out in our
addendum dated November 12, 2010, before registering the bank mandate in the new folio.
The verification procedures for registration of bank mandates will henceforth be applicable
at the time of fresh subscription/new folio creation with the Mutual Fund i.e. in case
the fresh subscription cheque does not belong to the bank mandate mentioned in the
application form, the AMC shall seek the additional documents and follow the procedures
set out in addendum dated October 1, 2013, before registering the bank mandate in the
new folio.
TAX & LEGAL INFORMATION
A. Taxation on investing in Mutual Funds
TAX BENEFITS
The following tax benefits are available to investors and the Fund under the present taxation
laws. The information set forth below is based on the advice of the Funds tax advisor and
is included for general information purposes only and therefore for all tax related matters,
investors should consult their own tax advisors. The information set forth below reflects
the law and practice as of date of this Offer Document. Investors/ Unit holders should be
aware that the relevant fiscal rules or their interpretation may change. There is a possibility
that the tax position prevailing at the time of an investment in the Scheme can change
thereafter. Mutual Fund will pay / deduct taxes as per tax law applicable on relevant date.
The investor will not have any recourse in case of additional tax liability imposed due to
changes in the tax structure in the future.
It may be noted that investors/ unit holders are responsible to pay their own taxes.
Investors/ unit holders should consult their own tax adviser with respect to the tax
applicable to them for participation in the scheme.
i. TAX BENEFITS TO THE MUTUAL FUND
JM Financial Mutual Fund is a Mutual Fund registered with the Securities and Exchange

Board of India and hence the entire income of the Fund will be exempt from income-tax
in accordance with the provisions of Section 10(23D) of the Income-tax Act, 1961 (the Act).
The Fund is entitled to receive all income without any deduction of tax at source under
the provisions of Section 196(iv), of the Act.
On income distribution, if any, made by the Fund, to its unit holders of a Debt Fund, income
distribution tax will be payable under Section 115R of the Act at the following rates:
At 25 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed to Individuals or a HUFs
by a Money Market Mutual Fund and a Liquid Fund.
At 30 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed to any other person by
a Money Market Mutual Fund and a Liquid Fund.
At 25 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed to individuals and HUFs
by a fund other than a money market mutual fund or a liquid fund.

At 5 percent on the income distributed from 1st June 2013 onwards by a mutual fund
to a non resident or to a foreign company under an infrastructure debt scheme.
At 30 percent (plus applicable surcharge and an additional surcharge by way of
Education Cess of 2 percent and Secondary and Higher Education Cess of 1 percent
on the amount of tax plus surcharge) on income distributed by other funds to persons
other than individuals and HUFs, for instance, corporate.
An equity oriented fund is not required to pay any Income Distribution Tax u/s 115R of
the Act.
With effect from 1st October, 2014, as per the amendments made effective by the Finance
(No. 2) Act, 2014, the amount on which the above tax rates apply needs to be grossed up.
ii. TAX BENEFITS TO THE Unit holders
INCOME TAX: As per Section 10(35) of the Act, any income other than capital gain received
in respect of units of a mutual fund specified under Section 10(23D) will be exempt from
income-tax in the hands of the unit holders.
A. LONG TERM CAPITAL GAINS TAX ON TRANSFER OF UNITS OF OTHER THAN EQUITY
ORIENTED FUND:
Long-term capital gains on sale of units of Mutual Funds other than equity oriented funds
are not exempt from income tax under Section 10(38) of the Act in the hands of unit
holders. While computing the gains, in some cases, the benefit of indexation of cost of
acquisition is available. In some cases, the investor has the option to pay tax on indexed
gains or unindexed gains whichever is more beneficial. Further, Section 48 provides that
no deduction shall be allowed in respect of STT paid for the purpose of computing Capital
Gains. The provisions for taxation of long-term capital gains for different categories of
assessee are explained hereunder:

Category of Investor

Resident unit holders

Rate at which tax is payable


(see note 1 below)
20% (see note 2 and 3 below)

Whether
benefit of
indexation
of cost is
available?
Yes

Foreign Companies (including


20% (see note 4 below)
Qualified Foreign Investors)

No

Non-resident Indians (section


115 E)

20% (for unspecified asset)


10% (for specified asset)

No (see note 5
below)

Overseas Financial
Organisations (Section 11
5AB) and Foreign Institutional
Investors, Foreign Portfolio
Investors (1 15AD)

10%

No

Non-residents
20%
No
Notes:
1. In case of companies, if income exceeds Rs. 1 crore but does not exceed Rs 10 crores,
then the tax payable would be increased by a surcharge @ 7% in case of domestic
companies and @ 2% in case of foreign companies and if income exceeds Rs 10 crore
then surcharge @ 12% in case of domestic companies and @ 5% in case of foreign
companies would be applicable. In all cases, the tax payable (as increased by surcharge
in case of companies referred to above) would be further increased by Education Cess
(2%) and Secondary & Higher Education Cess (1%).
2. In the case of Individuals, where taxable income of the individual exceeds Rs 1 crore,
surcharge @ 12% would be applicable. The tax payable (as increased by surcharge
would be further increased by Education Cess (2%) and Secondary & Higher Education
Cess (1%). In the case of Partnership Firms where taxable income exceeds Rs 1 crore,
surcharge @ 12% would be applicable. The tax payable (as increased by surcharge
would be further increased by Education Cess (2%) and Secondary & Higher Education
Cess (1%).
3. In the case of Resident Individuals and HUFs, where taxable income as reduced by
long term capital gains is below the exemption limit, the long term capital gains will
be reduced to the extent of the shortfall and only the balance long term capital gains
will be charged at the flat rate of 20% and Education Cess and Secondary and Higher

Education Cess.
4. It may be possible for foreign companies to opt for computation of long term capital
gains as per Section 112, which provides for 10% tax on long term capital gains
computed without indexation of cost. However, this issue is not free from doubt as
there have been several judicial and appellate decisions where it has been held that
a non resident is not entitled to the benefit of paying tax at 10% on unindexed gains.
5. For non-resident Indians, under Section 115E of the Act, long-term capital gains
would be calculated without indexation of cost of acquisition. However, such units
should have been acquired or purchased with or subscribed to in convertible foreign
exchange. It may be possible for non-resident Indians to opt for computation of
long term capital gains as per Section 112, which provides for 10% tax on long term
capital gains computed without indexation of cost. In such case, the non-resident
Indian would have to forego all the benefits of concessional rate of tax available to
non-resident Indians under Chapter XII-A of the Act. However, this issue is not free
from doubt as there have been several judicial and appellate decisions where it has
been held that a non resident is not entitled to the benefit of paying tax at 10% on
unindexed gains.
6. With effect from 1st April, 2014, units held by all FIIs/QFIs/FPIs would be classified as
capital assets and accordingly, the gains/losses from the disposal of the said units
would constitute capital gains/loss in their hands. These investors would not be
considered to have business income as far as transactions in units are concerned.
Exemption from Long Term capital gain:
Under Section 54EC (1) of the Act, taxable capital gains, arising on transfer of a long term
capital asset, shall not be chargeable to tax to the extent such capital gains are invested
in notified bonds within six months from the date of the transfer of the said capital asset
subject to an upper limit of Rs. 50 lakhs whether the said investment is made in the same
year (of transfer) or the succeeding year..
Under Section 54F (1) of the Act , subject to the conditions specified therein, in the case of
an individual or a HUF, capital gains (subject to the exemption of long-term capital gains
provided for in section 10(38) of the Act, discussed elsewhere in this Statement) arising on
transfer of a long term capital asset (not being a residential house) are not chargeable to tax
if the entire net consideration received on such transfer is invested within the prescribed
period in one residential house in India. To avail this deduction, the investor should not
own more than one residential house in addition to the proposed new residential house for
which deduction is sought to be claimed. If part of such net consideration is invested within
the prescribed period in one residential house, then such gains would not be chargeable
to tax on a proportionate basis. For this purpose, net consideration means full value of the
consideration received or accruing as a result of the transfer of the capital asset as reduced
by any expenditure incurred wholly and exclusively in connection with such transfer.
B. SHORT TERM CAPITAL GAINS ON TRANSFER OF UNITS OF OTHER THAN EQUITY
ORIENTED FUND:
Short term capital gains in respect of units of non equity oriented mutual funds held for a
period of not more than 36 months is added to the total income of the tax payer.
Total income including short-term capital gains is chargeable to tax as per the relevant
slab rates for individuals. In the case of Individuals, where taxable income of the individual
exceeds Rs 1 crore, surcharge @ 12% would be applicable In case of Foreign Institutional
Investors, Qualified Foreign Investors, Foreign Portfolio Investors and domestic companies,
short term capital gain will be chargeable to tax at the flat rate of 30% plus applicable
surcharge and education cess and secondary and higher education cess. In case of foreign
companies, the tax rate would be 40%. In case of companies, if income exceeds Rs. 1 crore
but not more than Rs 10 crore, then the tax payable would be increased by a surcharge @
7% in case of domestic companies and @ 2% in case of foreign companies and if income
exceeds Rs 10 crore then surcharge @ 12% in case of domestic companies and @ 5% in
case of foreign companies would be applicable In all cases, the tax payable (as increased
by surcharge referred to above) would be further increased by Education Cess (2%) and
Secondary & Higher Education Cess (1%).
C. LONG TERM CAPITAL GAINS TAX ON TRANSFER OF UNITS OF EQUITY ORIENTED
FUNDS
Under Section 10(38) of the Act, long term capital gains arising on sale of units of equity
oriented funds are exempt from income tax in the hands of Unit holders, provided Securities
Transaction Tax (STT) is charged on such sale by the Mutual Fund.
D. LONG TERM CAPITAL GAINS TAX ON TRANSFER OF UNIT OF NON EQUITY
ORIENTED FUNDS
i. For Resident Individuals, HUFs and Indian Companies
Long-term Capital Gains in respect of units of non equity oriented Mutual Funds held
for a period of more than 36 months will be chargeable under section 112 of the Act at
the rate of 20% plus surcharge, as applicable and cess. Capital gains would be computed
after taking into account cost of acquisition as adjusted by Cost Inflation Index notified by
the Central Government and expenditure incurred wholly and exclusively in connection
with such transfer. In case of resident Individual or HUF, where taxable income as reduced
by long term capital gains is below the exemption limit, the long term capital gains will
be reduced to the extent of the shortfall and only the balance long term capital gains will
be charged at the flat rate of 20% plus surcharge, as may be applicable and cess..
ii. For Foreign Institutional Investors (FIIs), and Foreign Portfolio Investors (FPI)
fulfilling conditions laid down under section 115AD, Qualified Foreign Investors
(QFI), Overseas Financial Organisations covered by section 115AB
Under the provisions of section 115AD of the Act, income by way of long-term capital gains
in respect of securities (other than units referred to in section 115AB) will be chargeable

at the rate of 10% plus surcharge, as may be applicable and cess. Similarly, under section
115AB of the Act, income earned by way of long-term capital gains in respect of units
purchased in foreign currency held for a period of more than 12 months by Overseas
Financial Organisation will be chargeable to tax at the rate of 10%, plus applicable surcharge
and education cess and secondary and higher education cess. The capital gain for the
purpose of section 115AB and 115AD would be calculated without indexation of cost of
acquisition.Like other non resident investors, Overseas Financial Organisations, FIIs, QFIs
and FPIs are also eligible for claiming benefits under a Double Tax Avoidance Agreement
/ Treaty (DTAA) entered into by India with the country of which the concerned FII is a tax
resident. As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance
to a country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits
under the DTAA, the assessee would have to provide a certificate of his being resident
(commonly known as Tax Residency Certificate) from the government of the country in
which he is a resident. In addition to the said certificate, the concerned non resident is
also required to provide certain information in Form 10F such as status, nationality, Tax
Identification Number, period for which the assessee is a resident in the concerned country,
address and a declaration that the certificate of him being a resident is obtained. If any
information in Form 10F is already provided on the certificate of residency, the same need
not be provided again the form.
iii. For Non-Resident Indians
Under the provisions of section 115E of the Act for non-resident Indians, income by way
of long-term capital gains in respect of specified assets purchased in convertible foreign
exchange as defined under the provisions of section 115C of the Act (which includes shares,
debentures, deposits in an Indian Company and security issued by Central Government) is
chargeable at the rate of 10% plus cess. Such long-term capital gains would be calculated
without indexation of cost of acquisition. In such case, the non-resident Indian would
have to forego all the benefits of concessional rate of tax available to non-resident Indians
under Chapter XII-A of the Act. However, this issue is not free from doubt as there have
been several judicial and appellate decisions where it has been held that a non resident
is not entitled to the benefit of paying tax at 10% on unindexed gains. The exemption
under section 10(38) as stated above is also applicable in case of non-resident Indians.
iv. For other Non-Residents
In the case of a resident of a country with which a DTAA is in force, the tax should be
withheld as per provisions in the Act or as per the provisions in the DTAA whichever is
more beneficial to the non-resident investor. Under the provisions of section 112 of the
Act, long-term capital gains (other than those exempt as above and referred to below)
are subject to tax @ 20% (plus applicable surcharge and cess).
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a
country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits
under the DTAA, the assessee would have to provide a certificate of his being resident
(commonly known as Tax Residency Certificate) from the government of the country in
which he is a resident. In addition to the said certificate, the concerned non resident is
also required to provide certain information in Form 10F such as status, nationality, Tax
Identification Number, period for which the assessee is a resident in the concerned country,
address and a declaration that the certificate of him being a resident is obtained. If any
information in Form 10F is already provided on the certificate of residency, the same need
not be provided again in the form.
Long term capital gains arising on the transfer of a capital asset, being unlisted securities
will be subject to tax @ 10% (plus applicable surcharge and cess) without giving effect of
Indexation. Provided the securities are held for more than 36 months.
E. SHORT TERM CAPITAL GAINS ON TRANSFER OF UNITS OF EQUITY ORIENTED
FUNDS
Section 111A of the Act provides that short-term capital gains arising on sale of units
of equity oriented funds are chargeable to income taxat a concessional rate of 15%
plus applicable surcharge, education cess and secondary and higher education cess as
applicable, provided STT is charged on such sale by the Mutual Fund. In case of companies
if income exceeds Rs. 1 crore but does not exceed Rs 10 crores, then the tax
payable would be increased by a surcharge @ 7% in case of domestic companies and
@ 2% in case of foreign companies and if income exceeds Rs 10 crore then surcharge @
12% in case of domestic companies and @ 5% in case of foreign companies would be
applicable. In the case of Individuals, where taxable income of the individual exceeds Rs
1 crore, surcharge @ 12% would be applicable. In all cases, the tax payable (as increased
by surcharge would be further increased by Education Cess (2%) and Secondary & Higher
Education Cess (1%).
Further, Section 48 provides that no deduction shall be allowed in respect of STT paid for
the purpose of computing Capital Gains.
Short term capital gains not chargeable under the provisions of section 111A of the Act is
added to the total income. Total income including short-term capital gains is chargeable to
tax as per the relevant slab rates for resident or non resident individuals. In case of Indian
companies and FIIs/FPIs/QFIs, the rate of tax would be 30%. In case of a foreign company,
the rate of tax would be 40%.
F. CAPITAL LOSSES:
Losses under the head Capital Gains cannot be set off against income under any other
head. Further within the head Capital Gains, long term capital losses cannot be adjusted

against short term capital gains. However, short term capital losses can be adjusted against
long term capital gains. Long term capital loss arising on transfer of units of an equity
oriented fund on which STT is paid, cannot be set-off against any other capital gains.
Consequently, such loss shall lapse in the year in which it is incurred.
Unabsorbed long-term capital loss and short-term capital loss can be carried forward and
set off against the income under the head Capital Gains in subsequent eight assessment
years.
According to Section 94(7) of the Income Tax Act, if any person buys or acquires units
within a period of three months prior to the record date fixed for declaration of dividend
or distribution of income and sells or transfers the same within a period of nine months
from such record date, then losses arising from such sale to the extent of income received
or receivable on such units, which are exempt under the Income Tax Act, will be ignored
for the purpose of computing his income chargeable to tax.
Further, Section 94(8) provides that, where additional units have been issued to any person
without any payment, on the basis of existing units held by such person then the loss on
sale of original units shall be ignored for the purpose of computing income chargeable
to tax, if the original units were acquired within three months prior to the record date
fixed for receipt of additional units and sold within nine months from such record date.
However, the loss so ignored shall be considered as cost of acquisition of such additional
units held on the date of sale by such person.
TAX DEDUCTION AT SOURCE
FROM INCOME IN RESPECT OF UNITS:
As per the proviso to Section 196A(1) of the Act, no tax shall be deducted at source from
any income credited or paid to non-resident unitholders in respect of units of a mutual
fund specified under Section 10(23D) of the Act. Similarly as per the provisions of Section
194K of the Act, no tax should be withheld or deducted at source where any income is
credited or paid by a mutual fund to a resident unitholders.
FROM CAPITAL GAINS ON TRANSFER OF UNITS OF OTHER THAN EQUITY ORIENTED
FUND
(a) In respect of Resident Unit holders:
As per section 194K, no tax is required to be deducted at source on capital gains arising
to any resident Unit holder. In this connection, reference may also be made to circular no.
715 dated August 8, 1995 issued by the Central Board for Direct Taxes (CBDT).
(b) In respect of Non- Resident Unit holders:
As per the provisions of Section 195 r.w.s 196D(2) of the Act, tax is required to be deducted
at source from the redemption proceeds paid to investors. Under Section 195 of the Act,
tax shall be deducted at source in respect of capital gains as under:
Category of Investor

Rate at which tax is


deductible on short
term capital gains
(see note 1 below)

Rate at which tax is


deductible on long
term capital gains
(see note 1 below)

Foreign companies (including QFI)

40%

20%

FIIs, and FPIs

NIL

NIL

Overseas Financial Organisation

30%

10%

Other non-residents (including QFI)


30%
20%
Note:
In case of companies if income exceeds Rs. 1 crore but does not exceed Rs 10 crores, then
the tax payable would be increased by a surcharge @ 7% in case of domestic companies
and @ 2% in case of foreign companies and if income exceeds Rs 10 crore then surcharge
@ 12% in case of domestic companies and @ 5% in case of foreign companies would be
applicable. In the case of Individuals, where taxable income of the individual exceeds Rs
1 crore, surcharge @ 12% would be applicable. In all cases, the tax payable (as increased
by surcharge would be further increased by Education Cess (2%) and Secondary & Higher
Education Cess (1%).
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a
country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits under
the DTAA, the assessee would have to provide a certificate of his being resident (commonly
known as Tax Residency Certificate)from the government of the country in which he is
a resident. In addition to the said certificate, the concerned non resident is also required
to provide certain information in Form 10F such as status, nationality, Tax Identification
Number, period for which the assessee is a resident in the concerned country, address and
a declaration that the certificate of him being a resident is obtained. If any information in
Form 10F is already provided on the certificate of residency, then the same need not be
provided again in the form. However, where the unit holder, resident or non-resident, does
not furnish its Permanent Account Number to the mutual fund, then tax will be withheld
at the rate of 20% even if the DTAA or the Act provide for a lower rate.
FROM CAPITAL GAINS ON TRANSFER OF UNITS OF EQUITY ORIENTED FUND WHERE
SECURITIES TRANSACTION TAX IS PAID
(a) In respect of Resident Unit holders :
No tax is required to be deducted at source on capital gains arising to any resident Unit
holder (under section 194K) vide circular no. 715 dated August 8, 1995 issued by the
Central Board for Direct Taxes (CBDT).
(b) In respect of Non- Resident Unit holders:

As per the provisions of Section 195 r.w.s 196D(2) of the Act, tax is required to be deducted
at source from the redemption proceeds paid to investors. This withholding is in addition
to and independent of the securities transaction tax payable, if any, by the investor.
Under Section 195 of the I.T. Act, tax shall be deducted at source in respect of capital
gains as under:
Category of Investor

Rate at which tax is


deductible on short
term capital gains
(see note 1 below)

Rate at which tax is


deductible on long
term capital gains
(see note 1 below)

Foreign companies (including QFI)

15%

NIL

FIIs, s, FPIs

NIL

NIL

Other non-residents (including QFI)


15%
NIL
Note:
In case of companies if income exceeds Rs. 1 crore but not more than Rs 10 crore, then
the tax payable would be increased by a surcharge @ 7% in case of domestic companies
and @ 2% in case of foreign companies and if income exceeds Rs 10 crore then surcharge
@ 12% in case of domestic companies and @ 5% in case of foreign companies would be
applicable. In the case of Individuals, where taxable income of the individual exceeds Rs
1 crore, surcharge @ 12% would be applicable. In all cases, the tax payable (as increased
by surcharge would be further increased by Education Cess (2%) and Secondary & Higher
Education Cess (1%).
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a
country with which a DTAA is in force, the tax should be deducted at the rate provided
in the Finance Act of the relevant year or at the rate provided in DTAA whichever is more
beneficial to the assessee. As per the Finance Act 2013, in order to claim the benefits
under the DTAA, the assessee would have to provide a certificate of his being resident
(commonly known as Tax Residency Certificate) from the government of the country in
which he is a resident. In addition to the said certificate, the concerned non resident is
also required to provide certain information in Form 10F such as status, nationality, Tax
Identification Number, period for which the assessee is a resident in the concerned country,
address and a declaration that the certificate of him being a resident is obtained. If any
information in Form 10F is already provided on the certificate of residency, then the same
need not be provided again in the form.
However, where the non resident unit holder does not furnish its Permanent Account
Number to the mutual fund, then tax will be withheld at the rate of 20% even if the DTAA
or the Act provide for a lower rate.
SECURITIES TRANSACTION TAX
IN RESPECT OF UNITS OF OTHER THAN EQUITY ORIENTED FUNDS
Securities Transaction Tax (STT) is not applicable on transactions of purchase or sale of
units of a non equity oriented mutual fund.
IN RESPECT OF UNITS OF EQUITY ORIENTED FUNDS
STT is applicable on transactions of purchase or sale of units of an equity oriented fund
entered into on a recognized stock exchange or on sale of units of an equity oriented fund
to the Fund. The STT rates as applicable are given in the following table:
Taxable securities transaction

Rate (as a %
of value of the
transaction)

Payable by

Purchase/ Sale of Equity Shares on recognised stock


0.1%
exchange (delivery based)

Purchaser/
Seller

Purchase of an unit of an equity oriented fund, where


The transaction of such purchase is entered into in a
recognised stock exchange; and The contract for the NIL
purchase of such share is settled by the actual delivery
or transfer of such share.

Purchaser

Sale of an unit of an equity oriented fund, where


The transaction of such sale is entered into in a
recognised stock exchange; and
0.001%
The contract for the sale of such share is settled by the
actual delivery or transfer of such share.

Seller

Sale of an equity share in a company or a unit of equity


oriented fund, where The transaction of such sale
is entered into in a recognised stock exchange; and
0.025%
The contract for the sale of such share is settled
otherwise than by the actual delivery or transfer

Seller

Sale of unit of an equity oriented fund to the Mutual


0.001%
Fund itself

Seller

Sale of an option in securities,

Seller

0.017%

In case of sale of option in securities, where option


0.125%
is exercised

Purchaser

Sale of a futures in securities


0.01%
Seller
The Fund is responsible for collecting the STT from every person who sells the Unit to it at
the rate mentioned above. The STT collected by the Fund during any month will have to
be deposited with the Central Government by the seventh day of the month immediately
following the said month.

INVESTMENTS BY CHARITABLE AND RELIGIOUS TRUSTS


Units of a Fund Scheme referred to in section 10(23D) of the Act constitute an eligible
avenue for investment by charitable or religious trusts per rule 17C of the Income Tax Rules,
1962, read with clause (xii) of sub-section (5) of Section 11 of the Income Tax Act, 1961.
WEALTH TAX
Finance Act, 2015 has ceased the applicability of wealth tax from 01-04-2015. Hence the
same is not applicable.
GIFT TAX
The Gift-tax Act, 1958, has ceased to apply to gifts made on or after 1 October 1998. Gift
of units purchased under the Scheme would therefore be exempt from Gift Tax. However
if any Individual or an Hindu Undivided Family receives a gift of units of any mutual fund
whose market value exceeds Rs. 50,000/- and such gift is received from a person other
than relative as defined in section 56 of the Act, then the value of such gift would be
considered as the income of the recipient and would be added to the normal income of
such person for income tax purpose.
EXEMPTION FROM CAPITAL GAINS ON MERGER OF MUTUAL FUND SCHEMES
In order to facilitate consolidation of such schemes of mutual funds in the interest of the
investors, Finance Act, 2015 has provided tax neutrality to unit holders upon consolidation
or merger of mutual fund schemes provided that the consolidation is of two or more
schemes of an equity oriented fund or two or more schemes of a fund other than equity
oriented fund.
Consolidating scheme is defined as the scheme of a mutual fund which merges under the
process of consolidation of the schemes of mutual fund in accordance with the Securities
and Exchange Board of India (Mutual Funds) Regulations, 1996 and consolidated scheme
as the scheme with which the consolidating scheme merges or which is formed as a result
of such merger.
The cost of acquisition of the units of consolidated scheme shall be the cost of units in
the consolidating scheme and period of holding of the units of the consolidated scheme
shall include the period for which the units in consolidating schemes were held by the
unit holder.
These amendments are effective from 1st April, 2015 and will accordingly apply, in relation
to the financial year 2015-16 (assessment year 2016-17) and subsequent assessment years.
Permanant Account Number
In accordance with Circular dated April 27, 2007 issued by the Securities and Exchange
Board of India (SEBI), Permanent Account Number (PAN) issued by the Income Tax
authorities will be used as the sole identification number for all investors (existing and
prospective) transacting in the securities market, including mutual funds, irrespective of
the amount of transaction, (except for Micro SIP) with effect from July 02, 2007.
As per SEBI guidelines and as per Rule 114 (B) of Income Tax Rules, 1962, it is mandatory
for every/all the joint investor/s to submit verified copy of his/her/their PAN Card for all
investments irrespective of the amount involved including SIP while opening the SIP
Account. Even NRI investor is also required to submit the same.
If the investment is in the name of a minor, the verified copy of PAN Card of the minor or
his father or mother or legal guardian, who represents the minor, should be submitted.
With effect from January 1,2008 , it is mandatory for all existing and prospective investors
(including joint holders, guardians of minors, NRIs etc) to enclose a verified copy of PAN
proof along with the application for any transaction in the schemes of JM Financial
Mutual Fund.
The verification of the PAN from the original PAN card/ letter can be done by any of the
following under his/her signature, rubber stamp and date
any ARN holder if the PAN proof is self attested by Investor
Bank Manager,
notary,
officials of JM Financial Mutual/ Investor Service Centres of Karvy Computershare Pvt. Ltd.
Investors transacting through approved Web Portals are also required to get their PAN
verified by their Web Portals.
In case, the investor does not conform to the above requirement of submission of verified
copy of PAN or produces original PAN proof for verification or the PAN details as per
furnished verified copy of PAN proof does not match with the Website of Income Tax Deptt.
as prescribed by SEBI, the AMC/its Registrar reserves the right to reject the application
before allotment and refund the investment amount, without any interest.
In case of inadvertent allotment, the AMC reserves the right to revert the transaction &
refund the investment amount, without any interest.
Micro SIP : The mandatory requirement of submitting a copy of PAN card has been
dispensed with in case of Micro SIP (Pls refer to para on Micro SIP for more details).
Daily Net Asset Value (NAV) Publication
The NAV of the schemes will be declared on all Business Days and may be published in 2
newspapers. NAVs can also be viewed on www.JMFinancialmf.com and www.amfiindia.
com. Investors may also contact any of the Investor Service Centres of JM Financial
Mutual Fund
For Investor Grievances please contact
HEAD - CLIENT SERVICES
JM FINANCIAL ASSET MANAGEMENT LTD
(Formerly known as JM Financial Asset Management Private Ltd)
Corporate Identity Number: U65991MH1994PLC078879

502, 5th Floor, A Wing, Laxmi Towers, Bandra Kurla Complex, Bandra (E), Mumbai 400 051.
Tel. No.: (022) 6198 7777 Fax Nos.: (022) 2652 8388; Email: investor@jmfl.com
REGISTRAR: KARVY COMPUTERSHARE PRIVATE LTD
Karvy Plaza, H. No. 8-2-596, Avenue 4 Street No. 1, Banjara Hills, Hyderabad - 500 034 . Tel.
No.: 040 - 2331 2454 / 2332 0251 / 751 Fax No.: 040 - 2331 1968. E-mail: services_jmf@
karvy.com
UNIT HOLDERS INFORMATION:
Accounts Statements
Pursuant to Regulation 36 of SEBI (Mutual Funds) Regulations, 1996 and amendments
thereto, read with SEBI circular No. Cir/ IMD/ DF/16/ 2011 dated September 8, 2011, the
investor whose transaction** has been accepted by the AMC on or after October 1, 2011
shall receive the following:
(i) On acceptance of the application for subscription, an allotment confirmation
specifying the number of units allotted by way of email and/ or SMS within 5 Business
Days from the date of receipt of transaction request to the e-mail address and/or
mobile number registered by the investor.
(ii) Thereafter, a Consolidated Account Statement (CAS)^ for each calendar month to
those Unit holder(s) in whose folio(s) transaction (s)** has/have taken place during the
month. shall be sent by ordinary post / or e-mail (in case e-mail address is provided by
the investor) on or before 10th of the succeeding month. The CAS shall be sent to the
mailing address/ email available in the folio where the customer has last transacted
(including non financial transaction).

^Consolidated Account Statement (CAS) shall contain details relating to all the
transactions** carried out by the investor across all schemes of all mutual funds during
the month and holding at the end of the month including transaction charges paid
to the distributor.

**The word transaction shall include purchase, redemption, switch, dividend payout,
dividend reinvestment, systematic investment plan, systematic withdrawal plan,
systematic transfer plan and bonus transactions.
(iii) For the purpose of sending CAS, common investors across mutual funds shall be
identified by their Permanent Account Number (PAN). The CAS shall not be sent to
the Unit holders for the folio(s) not updated with PAN details.

For folios without a valid PAN, the AMC may send account statements on a monthly
basis on or before the 10th of the succeeding month. The Unit holders are therefore
requested to ensure that the folio(s) are updated with their PAN.
(iv) In case of a specific request received from the Unit holders, the AMC will dispatch the
account statement to the investors within 5 Business Days from the receipt of such
request.
(v) In the event the account has more than one registered holder, the first named Unit
holder shall receive the CAS/ account statement.
(vi) Consolidation shall be done only for folios in which the unit holders and the order
of holding in terms of first, second and third is similar. In case of folios pertaining to
minors, the guardians PAN shall be used for consolidation.
Further, the CAS detailing holding across all schemes of all mutual funds at the end of
every six months (i.e. September/ March), shall be sent by ordinary post / e-mail (in case
e-mail address is provided by the investor), on or before 10th day of succeeding month,
unless a specific request is made to receive in physical, to all such Unit holders in whose
folios no transaction has taken place during that period.
In case of investment though New Fund offers (NFOs), investors will receive the allotment
confirmation from the AMC within the stipulated time.
The statement of holding of the beneficiary account holder for units held in demat will be
sent by the respective Depository Participants (DPs) periodically.
Investors are requested to note the following regarding dispatch of account
statements:
1. The Consolidated Account Statement (CAS) for each calendar month is to be issued
on or before tenth day of succeeding month, to the investors who have provided valid
Permanent Account Number (PAN). Due to this regulatory change, AMC shall now cease
to send physical account statement to the investors after every financial transaction
including systematic transactions. Further, CAS will be sent via email where any of the folios
consolidated has an email id or to the email id of the first unit holder as per KYC records.
2. For folios not included in the Consolidated Account Statement (CAS), the AMC shall
henceforth issue account statement to the investors on a monthly basis, pursuant to any
financial transaction in such folios, on or before tenth day of succeeding month. In case of
a New Fund Offer Period (NFO), the AMC shall send confirmation specifying the number
of units allotted to the applicant by way of a physical account statement or an email and/
or SMS to the investors registered address and/or at email id/mobile number, not later
than five business days from the date of closure of the NFO.
Pursuant to SEBI Circular No. CIR/MRD/DP/31/2014 dated November 12, 2014 regarding
Consolidated Account Statements (CAS) for all the securities assets, the following provisions
shallbe applicable. Investors are requested to note the changes regarding dispatch of
Account Statements to the investors for the transactions done by them in any of the
schemes of the Fund, on or after February 01, 2015.
1. Investors not holding units in Demat Account:
Based on the PAN of the investors, for each calendar month, Consolidated Account
Statement (CAS) shall be dispatched by the Asset Management Companies (AMC)/Registrar
& Transfer Agent (RTA) within 10th day of the succeeding month to the investors in whose

folio transactions have taken place during that previous month.


In case of no transactions by the investors during the period of six months, the CAS shall
be dispatched by the AMC/RTA to the investors on half yearly basis, on or before 10th day
of the succeeding month.
2. Investors holding units in Demat Account:
Based on the PAN of the investors, for each calendar month, Consolidated Account
Statement (CAS) shall be dispatched by the respective Depository within 10th day of the
succeeding month to the investors, in whose folio transactions have taken place during
that previous month.
In case of no transactions by the investors during the period of six months, the CAS shall
be dispatched by the respective Depository to the investors on half yearly basis, on or
before 10th day of the succeeding month.
In case of demat accounts with nil balance and no transactions in securities and in
mutual fund folios, the respective Depository shall send the physical statement as per
the applicable regulations.
In case of statements which are currently being dispatched by email to the investors, the
CAS shall continue to be sent through email. In case the investor does not wish to receive
the CAS by email, option will be given to the investors to receive the same in physical
form, at the address registered in the Depository system. In case no email id is provided,
the statements will be sent in physical form.
Investors are requested to note that in case of any transactions done in the folios which
are not included in the CAS, the AMC shall issue a monthly account statement to the
investors on or before 10th day of the succeeding month. In case no email id is provided,
the statements will be sent in physical form.
Investors whose folio(s)/demat account(s) are not updated with PAN, shall not receive
the CAS. Hence, investors are hereby requested to update their folio(s)/demat account(s)
with the PAN.
In case of STP/SWP:
In case of specific request received from investors, the Fund/Registrar will provide the
account statement to the investors within 5 business days from the receipt of such request
without any charges. Further, soft copy of the account statement shall be mailed to the
investors under SIP/STP/SWP to their e-mail address on a monthly basis, if email id is
furnished in the folio concerned.
Exchange Platforms:
An account statement/Consolidated Account Statement (CAS) will be issued by the Mutual
Fund to investors who purchase/ redeem their units under this facility in physical mode. In
case of investors who intend to deal in units in depository mode, a demat statement will
be sent by Depository Participant showing the credit/debit of units to their account. The
units will be transferred to investors demat account via the exchange clearing corporations
and broker through whom the units are purchased.
Monthly Portfolio Disclosure
As per SEBI circular no. Cir/IMD/DF/21/2012 dated September 13, 2012, the AMC shall
disclose the portfolio (along with ISIN) as on the last day of the month for all its schemes
on its website on or before the tenth day of the succeeding month or within such time
lines as prescribed by SEBI, from time to time.
Half yearly Portfolio:
The mutual fund shall publish a complete statement of the scheme portfolio within one
month from the close of each half year (i.e. 31st March and 30th September), by way of an
advertisement at least, in one National English daily and one regional newspaper in the
language of the region where the head office of the mutual fund is located.
The mutual fund may opt to send the portfolio to all unit holders in lieu of the advertisement.
These shall also be displayed on website of the Fund, i.e. www.JMFinancialmf.com.
Half Yearly Financial Results:
The mutual fund and asset management company shall within one month from the close
of each half year, that is on 31st March and on 30th September, host a soft copy of its
unaudited / audited financial results on its website.
The Mutual Fund shall give an advertisement disclosing the hosting of the financial results
on the website in atleast one English daily newspaper having nationwide circulation and
in a newspaper having wide circulation published in the regional language where the
Corporate Office of the Mutual Fund is situated.
Annual Report:
Scheme wise Annual Report or an abridged summary thereof shall be sent to all unitholders
within four months from the date of closure of the relevant accounts year i.e. 31st March
each year.
Pursuant to SEBI Circular No. Cir/ IMD/ DF/ 16/ 2011 dated September 8, 2011, the following
provision with respect to sending annual report of scheme(s) of the Mutual Fund or
abridged annual report will be applicable. The scheme wise annual report or an abridged
summary hereinafter shall be sent by the AMC as under:
(i) by email to the unitholders whose e-mail address is available with the AMC
(ii) in physical form to the unitholders whose email address is not available with the AMC
and/ or to those unitholders who have opted/ requested for the same.
The physical copy of the schemewise annual report or abridged summary shall be made
available to the investors at the registered office of the AMC. A link of the scheme annual
report or abridged summary shall be displayed prominently on the website of the Mutual
Fund.
PREVENTION OF MONEY LAUNDERING & KNOW YOUR CUSTOMER

In terms of the Prevention of Money Laundering Act, 2002, the Rules issued there under
and the guidelines / circulars issued by SEBI regarding the Anti Money Laundering (AML
Laws), all intermediaries, including Mutual Funds, have to formulate and implement a client
identification programme, verification of identity and address, financial status, occupation
and such other personal information.
With effect from January 1, 2011, it is mandatory in case of all the investors(Individual/NonIndividuals) to be KYC Compliant, irrespective of the amount of investment.
The Power Of Attorney holders (in case of investments through a PoA Holder) and joint
account holders (in case of investments in joint names) will also have to be KYC compliant.
SPECIAL CASE:
Joint Holders: Joint holders (including first, second and third if any, are required) to be
individually KYC compliant before they can invest with any Mutual Fund. e.g. in case of
three joint holders, all holders need to be KYC compliant and copies of each holders KYC
Acknowledgement must be attached to the investment application form with any Mutual
Fund.
Minors: In case of investments in respect of a Minor, the Guardian should be KYC compliant
and attach his KYC Acknowledgement while investing in the name of the minor. The Minor,
upon attaining majority, should immediately apply for KYC compliance in his/her own capacity
and intimate the concerned Mutual Fund(s) with all the folio details, in order to be able to
transact further in his/her own capacity.
Power of Attorney (PoA) Holder: Investors desirous of investing through a PoA must note
that the KYC compliance requirements are mandatory for both the PoA issuer (i.e. Investor)
and the Attorney (i.e. the holder of PoA), both of whom should be KYC compliant in their
independent capacity and attach their respective KYC Acknowledgements while investing.
For transmission (In case of death of the unit holder): If the deceased is the sole applicant, the
claimant should submit his/her KYC Acknowledgement along with the request and other
relevant documents to effect the transmission in his/her favour.
KYC PROCESS
Pursuant to SEBI Circular No. MIRSD/ Cir-26/ 2011 dated December 23, 2011, SEBI (KYC
Registration Agency)
Regulations, 2011 and SEBI Circular No. MIRSD/SE/Cir-21/2011 dated October 5. 2011, in-order
to implement uniform KYC norms and eliminate duplication of KYC across SEBI registered
intermediaries in the securities market, KYC registration is centralized through KYC Registration
Agencies (KRA) registered with SEBI. Thus each investor has to undergo KYC process only once
in the securities market and the details would be shared with other intermediaries.
1 New investors are requested to use the revised common KYC Application Form with
specified documents as set out in the form and carry out the KYC process including
In-Person Verification (IPV) with any SEBI registered intermediaries including mutual
funds. The revised common KYC Application Forms are also available on our website
www.jmfinancialmf.com.
2 The Mutual Fund shall perform the initial KYC of its new investors and may undertake
enhanced KYC measures commensurate with the risk profile of its investors. The Mutual
Fund shall upload the details of the investors on thesystem of the KYC Registration Agency
(KRA). KRA shall send a letter to the investor within 10 working days of the receipt of the
initial/updated KYC documents from the Mutual Fund, confirming the details thereof.
3 It is mandatory for intermediaries including mutual funds to carry out In-Person
Verification (IPV) of its new investors from the Effective Date. The IPV carried out by any
SEBI registered intermediary can be relied upon by the Mutual Fund. The AMC or NISM/
AMFI certified distributors who are KYD compliant are authorized to undertake the IPV for
Mutual Fund investors. Further, in case of any applications received directly (i.e. without
being routed through the distributors) from the investors, the Mutual Fund may rely upon
the IPV (on the KYC Application Form) performed by scheduled commercial banks.
4 Once the investor has done KYC as per the revised process with a SEBI registered
intermediary, the investor need not undergo the same process again with another
intermediary including mutual funds. However, the Mutual Fund reserves the right to
carry out fresh KYC of the investor.
5 The AMC reserves the right to reject application forms for transactions in units of the
Mutual Fund not accompanied by letter/ acknowledgement issued by KRA. The KYC
compliance status will be validated with the records of the KRA before allotting units.
6 Existing KYC compliant investors of the Mutual Fund, who have completed the KYC
process prior to January 01, 2012, can continue to invest as per the practice prevalent
prior to the effective date. However it will not be applicable for investments in securities
market. These investors, if they wish to deal with any SEBI registered intermediary other
than mutual funds, will have to follow the new KYC procedure.
Note: The above change in relation to KYC process shall be applicable in respect of all
investment applications ( including MICRO SIP ) by new investors made on or after January
01, 2012.
All investors (Individuals or Non Individuals) who wish to make an investment in a mutual fund
scheme through purchase or switch via a Lumpsum amount or via a Systematic Plan (SIP/STP)
(including MICRO SIP) will be required to complete the KYC process. This one-time verification
is valid for transactions across all mutual funds. Submission of KYC acknowledgement is
mandatory for the following :
All unit holders ( including joint holders ) i.e. Resident & Non resident Individuals
All Non Individual unit holders
HUF and its Karta
Guardian of Minor
Power of Attorney holder

Financial Institutions to whom the units of Mutual Fund are pledged.


PAN Exempted cases ( provided sufficient documentary evidence in support of such
claims is submitted ) :

In case of transactions undertaken on behalf of Central Government and/or State
Government and by officials appointed by Courts e.g. Official liquidator, Court receiver
etc.

Investors residing in the state of Sikkim

UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India

MICRO SIP
Point of Service (POS) of the intermediaries will accept KYC Application Forms along with
the necessary documents as set out in the KYC form (including originals if the copies are
not attested) verify documents, conduct In-Person Verification (IPV) and provide the KYC
Acknowledgement (across the counter on a best effort basis). KYC application and necessary
documents as set out in the form should be submitted along-with Financial Transactions to
any branch of the AMC. The KYC form after completion of IPV process can also be submitted
to the Investor Service Centre of Registrar & Transfer Agent along-with Financial Transactions.
Individual ( including NRI / PIO ) & Non Individual investors will have to produce Proof
of identity, Proof of Address and other mandatory documents as set out in the KYC
Application Form.
NRIs/PIOs, in addition to the certified true copy of the passport will also be required to
furnish certified true copy of the overseas address and permanent address. If any of the
documents (including attestations/ certifications) towards proof of identity or address
is in a foreign language, they have to be translated to English for submission. The
documents can be attested, by the Consulate office or overseas branches of scheduled
commercial banks registered in India. A PIO, in addition, will also be required to submit
a certified true copy of the PIO Card.
The documents submitted as per the above process by the investor to the Point of Service of
the Intermediaries would be forwarded to the KRA. The KRA on receipt of documents from
Intermediaries would send a confirmation to investors.
Once the investor has completed the KYC process as per the revised guidelines with a SEBI
registered intermediary from any KRA, the investor need not undergo the same process
again with another intermediary including Mutual Funds. However, the Mutual Fund reserves
the right to carry out fresh KYC of the investor. The investor needs to produce a copy of the
confirmation letter received from KRA when investing for the first time with a Mutual Fund for
fresh investments or additional purchases in an existing folio as per the aforesaid requirements
or till his KYC status is updated successfully as per the new revised KYC norms.
Existing KYC compliant investors of the Mutual Fund, who have completed the KYC process
prior to January 01, 2012, can continue to invest in Mutual Fund schemes as per the current
practice i.e. by submitting along with their Financial Transaction the KYC acknowledgement
issued prior to January 01, 2012 by CVL on behalf of all Mutual Funds. However it will not be
applicable for investments in other securities markets. These investors, in case they wish to
deal with any SEBI registered intermediary other than mutual funds, will have to follow the
new KYC procedure.
An existing investor can inform the Mutual Fund to update the KYC Acknowledgement against
all the folios/accounts held by him with the respective Mutual Fund. However, each of the
holders in these folios/accounts should be KYC Compliant. Applications Forms / Transaction
Slips not accompanied by KYC Acknowledgement / Confirmation letter are liable to be rejected
by the Mutual Fund and no transactions, other than redemption, will be permitted. Investors
are advised to complete KYC process through KRA at the earliest.
Further, in order to ensure that the unitholder receives all communications, including
redemption requests, at the new address, investors are also advised to forward any request for
change of address only to same POS/ intermediaries sufficiently in advance of any transaction
with the Fund House. Investors holding erstwhile MIN/ KYC Compliance Acknowledgement
and who have since changed their address with Karvy are requested to approach POS /KRA
and complete the process stated above. Kindly note that the Mutual Fund, the AMC or the
Trustees shall not be liable in case the investor does not follow the above procedure for
change of address or the earlier address continues to be in the Registrars database. AMC or
its Registrar will update change of address requests of KYC compliant investors based on the
data provided by KRA and will not be responsible for non-updation if not received sufficiently
in advance of any transaction.
Investors are advised to approach the same POS/ intermediaries from where the KYC
acknowledgement was issued in case they wish to rectify any data entry mistake by POS/KRA.
For details on documents to be submitted pls refer to the revised KYC forms available this site,
AMFI website ( www.amfiindia.com ) or on website of any SEBI registered KRAs.
New KYC Requirement:
Securities and Exchange Board of India (SEBI) vide its various circulars dated October 05,
2011, December 02, 2011 and December 23, 2011 have prescribed the requirements, for
the implementation of Uniform Know Your Customer (KYC) process across all intermediaries
registered with SEBI.
Pursuant to the above, the existing / new investors of the Mutual Fund are required to take
note of the following:
1. Investment by Investors who are KYC Compliant through KRAs (KYC Registration Agency)
on or after January 1, 2012 :

No action is required by such investors and they may invest in any Mutual Funds. However,
Non-individual entities like Corporate, Partnership Firm, Trust etc are required to submit
their Balance Sheet for every Financial Year on an ongoing basis within a reasonable
period to KYC Registration Agency (KRA).

2.

Investment in existing folios by Investors who are CVL MF KYC Compliant prior to January
1, 2012:

In case of the existing investors who are CVL MF KYC Compliant through the erstwhile
centralized KYC registration agency i.e. CDSL Ventures Ltd. (CVLMF), there will be no
effect on their subsequent transactions (including Systematic Investment Plan) in their
existing folios/accounts. However, the KYC status of such investors will continue to reflect
as MF VERIFIED BY CVLMF in the CVL KRA system.
3. Investment by new Investor who is CVL MF KYC Compliant:

In case a new investor who is CVL MF KYC Compliant wishes to invest as a sole investor
in a new folio in JM Financial Mutual Fund or he wishes to invest jointly with another
existing investor/s of JM Financial Mutual Fund who is/are also CVL MF KYC Compliant,
then such investor/s will have to submit the KYC Details Change Form along with the
investment application and complete the IPV process.
4. Investment by Non-KYC Compliant Investors (Individual or Non-Individual):

Non-KYC compliant investor/s desirous of investment, are required to submit the duly
filled in KYC Application Form along with necessary documents for completion of KYC
certification through KYC Registration Agencies (KRAs) and complete the In-person
Verification (IPV) at the time of making any investment.
5. Requirements from CVLMF KYC Compliant investors (i.e. KYC compliant prior to January
1, 2012):

I. Individual Investors:


In case, the individual investor is KYC compliant prior to January 1, 2012, the investor
will have to submitKYC Details Change Formwith respective applicable documents,
(if any) mentioned therein to update their Missing/Not Available details besides
completing the IPV process as a one time exercise. After due verification by the
respective KRA e.g. M/s CVL, the KYC status will get changed from MF VERIFIED
BY CVLMF to Verified by CVL KRA.


In case of individuals, missing/not available details are as under :


a.
Fathers/Spouse Name


b.
Marital Status


c.
Nationality


d.
In-person Verification (IPV)

II. Non - Individual investors:


In case of all Non individual investors who are KYC compliant prior to January 1,
2012, KYC process with IPV needs to be done afresh due to significant and major
changes in KYC requirements.
In case of opening of a new folio with JM Financial Mutual Fund or any other Mutual Fund,
the individual & non-individual investors will have to comply with the respective procedures
mentioned above. The above procedure is also applicable for Guardian (in case of Minor) /
Power of Attorney holder as well.
The necessary forms are available on the Mutual Fund website.
GENERAL PROVISIONS REGARDING LOAD
1. Intra & Inter Equity Switches:
No exit load for inter and intra equity switches except in case of (i) switches by SIP/STP
investors within 24 months (for cases registered from 4.1.2008 up to 2.10.2008) and
within 12 months (for cases registered upto 3.1.2008) of respective SIP/STP installments
(ii) switches by STP investors (for cases registered w.e.f. 3.10.2008) within 24 months
of respective STP installments (iii) switches by SIP investors (for cases registered w.e.f.
3.10.2008) within 12 months of respective SIP installments (iv) switches to / from JM
Arbitrage Advantage Fund to any equity schemes.
It is clarified that applicable exit load, if any, will be charged for redemptions/ switch outs
of the scheme (i.e. at portfolio level) before the completion of the stipulated load/lock-in
period. The stipulated load/lock-in period will be reckoned from the date of allotment
of units for a particular transaction in the scheme (i.e. at portfolio level) till the date of
redemption/switch out from that scheme, irrespective of the number of intra-scheme
switches by the investor between the aforementioned two dates (e.g switches between
plans/sub-plans/options/sub-options within the scheme having the same portfolio).
However, Government levies eg. STT (wherever applicable) will continue to be deducted
for every intra-scheme switch-out /redemption transactions.
2. No entry load:
In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/1
68230/09 dated June 30, 2009, no entry load will be charged for purchase / additional
purchase / switch-in accepted by the Fund with effect from August 1, 2009. Similarly, no
entry load will be charged with respect to applications for registrations under Systematic
Investment Plan/ Systematic Transfer Plan / accepted by the Fund with effect from August
1, 2009.
The upfront commission on investment made by the investor, if any, shall be paid to the
ARN Holder (AMFI registered Distributor) directly by the investor, based on the investors
assessment of various factors including service rendered by the ARN Holder
3. No Load on Bonus Unit and Units alloted on Re-investment of Dividend: Pursuant
to SEBI vide circular SEBI/IMD/CIR No. 14/120784/08 dated March 18, 2008 the AMC shall
not charge entry as well as exit load on Bonus units and on units alloted on Re-investment
of Dividend.
4. Exit Load/Contingent Deferred Sales Charge (CDSC)
With effect from August 1, 2009, exit load/ CDSC (if any) up to 1% of the redemption value
charged to the Unitholder by the Fund on redemption of units shall be retained by each

of the Schemes in a separate account and will be utilized for payment of commissions to
the ARN Holder and to meet other marketing and selling expenses.
Any amount in excess of 1% of the redemption value charged to the Unitholder as exit
load/ CDSC shall be credited to the respective Scheme immediately.
In case of Direct Plan:
No exit load shall be charged for any switch of investments between Existing Plan (whether
the investments were made before or after the Effective Date) and Direct Plan within the
same scheme. The applicable exit load, if any, will be charged for redemptions/ switch outs
of the scheme (i.e. at portfolio level) before the completion of the stipulated load/ lock-in
period. The stipulated load/ lock-in period will be reckoned from the date of allotment
of units for a particular transaction in the scheme (i.e. at portfolio level) till the date of
redemption / switch out from that scheme, irrespective of the number of intra-scheme
switches by the investor between the aforementioned two dates (e.g. switches between
plans/sub-plans/options/sub-options within the scheme having the same portfolio)
The extant provisions of applicability of load on redemptions/ switches from one Scheme
to another will continue to be applicable.
5. Change in the load structure
The Trustee reserves the right to modify/alter the load structure and may decide to charge
an exit load or a combination of exit loads (i.e. slabs of load based on tenure of holding)
on the Units with prospective effect, subject to the maximum limits as prescribed under
the SEBI Regulations. At the time of changing the load structure, the AMC shall take the
following steps:
a) The addendum detailing the changes shall be attached to Scheme Information
Documents and Key Information Memoranda. The addendum will be circulated
to all the distributors so that the same can be attached to all Scheme Information
Documents and Key Information Memoranda already in stock. The addendum shall
also be sent alongwith the newsletter sent to the Unitholders immediately after the
changes.
b) Arrangements shall be made to display the changes/modifications in the Scheme
Information Document in the form of a notice in all the JM ISCs and distributors
offices.
c) The introduction of the exit load alongwith the details shall be stamped in the
acknowledgement slip issued to the investors on submission of the application form
and may also be disclosed in the statement of accounts issued after the introduction
of such load.
d) The Fund shall arrange to display a notice in the JM ISCs at least 1 (one) day before
the change of the then prevalent load structure.
The investor is requested to check the prevailing load structure of the scheme before
investing.
transaction charges
(i) First Time Mutual Fund Investor (across Mutual Funds):

Transaction charge of Rs. 150/- for subscription of Rs. 10,000 and above will be
deducted from the subscription amount and paid to the distributor/ agent of the
first time investor and the balance shall be invested.
(ii) Investor other than First Time Mutual Fund Investor:

Transaction charge of Rs. 100/- per subscription of Rs. 10,000 and above will be
deducted from the subscription amount and paid to the distributor/ agent of the
investor and the balance shall be invested. Transaction charges (Rs. 150/- or Rs. 100/as may be applicable) in case of investments through Systematic Investment Plan
(SIP) shall be deducted only if the total commitment (i.e. amount per SIP installment
x No. of installments) amounts to Rs. 10,000/- or more. The Transaction Charges shall
be deducted in 4 installments.

Investors may note that distributors have an option to opt in or opt out of charging the
transaction charge. Pursuant to SEBI circular no. Cir/IMD/DF/21/2012 dated September
13, 2012, effective November 1, 2012 distributors shall also have the option to either
opt in or opt out of levying transaction charges, based on type of the product.
(iii) Transaction charges shall not be deducted for:

(a) purchases /subscriptions for an amount less than Rs. 10,000/-;

(b) transaction other than purchases/ subscriptions relating to new inflows, such
as Switch, STP, etc.

(c) purchases/ subscriptions made directly with the Fund (i.e. not through any
distributor/agent).

(d) Transactions, wherein the concerned distributor has not opted-in for transaction
charges.

(e) Transactions done through Stock Excghange platform.


It is also clarified that minimum investment criteria shall be monitored at the gross
investment amount level (i.e. amount before deducting transaction charges).

In terms of Best Practice Circular no. 20/2010-11 dated February 9, 2011, following
provisions are applicable w.e.f. April 1, 2011:
1. On Behalf of Minor Accounts: Where the account/folio (account) is opened on
behalf of a minor:
(a) The minor shall be the first and the sole holder in an account. There shall not be any
joint accounts with minor as the first or joint holder.
(b) The Guardian in the folio on behalf of the minor should either be a natural guardian
(i.e. father or mother) or a court appointed legal guardian. Information on the
relationship/status of the guardian as father, mother or legal guardian should be
provided to the AMC/ the Registrar of JM Financial Mutual Fund (the Registrar). If

(c)




2.
(a)

(b)

(c)






(d)




3.

(a)
(b)
(c)

(d)


(e)
(f )
4.
(a)
(b)

(c)
(d)

the documents mentioned in clause (c) below do not provide information evidencing
the relationship of natural guardian to the minor, separate documents establishing
the relationship should be provided. In case of court appointed legal guardian,
supporting documentary evidence should be submitted.
Date of birth of the minor along with photocopy of supporting documents as
enumerated below shall be mandatory while opening the account on behalf of minor:
1. Birth certificate of the minor, or
2. School leaving certificate / Mark sheet issued by Higher Secondary Board of
respective states, ICSE, CBSE etc., or
3. Passport of the minor, or
4. Any other suitable proof evidencing the date of birth of the minor.
Minor Attaining Majority Status Change:
Prior to minor attaining majority, the AMC/ Registrar will send advance notice to the
registered correspondence address advising the guardian and the minor to submit
an application form along with prescribed documents (as per (e) below) to change
the status of the account to major.
The account shall be frozen for operation by the guardian on the day the minor
attains the age of majority and no transactions shall be permitted till the documents
for changing the staus are received. However, the AMC will continue to process the
existing standing instructions like SIP, STP, SWP registered prior to the minor attaining
majority and send a intimation to that effect.
In case of existing standing instructions including STP, SIP and SWP registered
prior to the minor attaining majority, the AMC will send an advance notice to the
registered correspondence address advising the guardian and the minor that the
existing standing instructions will continue to be processed beyond the date of the
minor attaining majority till the time a instruction from the major to terminate the
standing instruction is received by the mutual fund along with the below mentioned
documents:
1. Services Request form, duly filled and containing details like name of major, folio
numbers, etc.
2. New Bank mandate where account changed from minor to major,
3. Signature attestation of the major by a manager of a scheduled bank / Bank
Certificate/ Letter,
4. KYC acknowledgement of the major.

The standing instruction shall be terminated within 30 days from the date of
receiving the instruction.
List of standard documents required to change the account status from minor to
major:
1. Services Request form, duly filled and containing details like name of major, folio
numbers, etc.
2. New Bank mandate where account has been changed from minor to major,
3. Signature attestation of the major by a manager of a scheduled bank / Bank
Certificate / Letter,
4. KYC acknowledgement of the major.
Change in Guardian: When there is a change in guardian either due to mutual
consent or demise of existing guardian, following documents should be submitted
to the AMC/ the Registrar prior to registering the new guardian:
Request letter from the new guardian,
No Objection Letter (NoC) or Consent Letter from existing guardian or Court Order
for new guardian, in case the existing guardian is alive.
Notarized copy or attested copy of the Death Certificate of the deceased guardian,
where applicable. The attestation may also be done by a special executive magistrate,
AMC authorised official or manager of a scheduled bank.
The new guardian must be a natural guardian (i.e. father or mother) or a court
appointed legal guardian.
1. Information on the relationship/status of the guardian as father, mother or legal
guardian should be specified in the application form.
2. In case of natural guardian, a document evidencing the relationship if the same
is not available as part of the documents submitted as per sub clause c of clause 1
mentioned above
3. In case of court appointed legal guardian, supporting documentary evidence
should be submitted.
Bank attestation attesting the signature of the new guardian in a bank account of
the minor where the new guardian is registered as the guardian.
KYC of the new guardian.
Nomination facility
Nomination should be maintained at the folio or account level and should be
applicable for investments in all schemes in the folio or account.
Where a folio has joint holders, all joint holders should sign the request for nomination/
cancellation of nomination, even if the mode of holding is not joint. Nomination
form cannot be signed by Power of attorney (PoA) holders.
Every new nomination for a folio/account will overwrite the existing nomination.
Nomination shall be mandatory for new folios/accounts opened by individual
especially with sole holding and no new folios/accounts for individuals in single
holding will be opened without nomination.
1. Even those investors who do not wish to nominate must sign separately confirming

their non-intention to nomina